SYDNEY homeowners would foot most of the bill for the billions of dollars raised through proposed changes to the capital gains tax, critics say.
A report released Monday by think-tank The Australia Institute said removing the capital gains tax exemption for homes worth more than $2 million would boost the budget by nearly $12 billion over the next four years.
It would also reduce the budget deficit in a way “fair” to low income families, because the change would mostly affect the top 1 per cent of earners, the report said.
But some economists have slammed the proposal, saying the $2 million threshold is too low in Sydney and would affect middle income families too.
“People who own fairly average homes in Sydney would be burdened with yet another tax liability on top of stamp duty,” Housing Industry Association economist Shane Garrett said.
Just short of 10 per cent of Sydney suburbs have a median house price of $2 million or more, while 61 of the 71 Australian suburbs with medians in that price category are in NSW, Core Logic RP Data figures show.
Credit: Aidan DevineNews Corp Australia Network