UNSW study reveals Labor property tax reforms hit retirees but miss half of investors

Labor’s tax changes announced in the May federal budget will force retirees who own a rental home to pay more, while reducing the tax burden on other groups, new University of NSW research has revealed. University researchers noted reforms of capital gains tax, in particular, would leave retirees worse off. Treasurer Jim Chalmers claimed in his budget night speech that the tax reforms were aimed at addressing “intergenerational equity”. This includes scrapping negative gearing tax benefits for investment properties and cutting the capital gains tax (CGT) discount from 50 to 30 per cent, for those who sell investment properties. MORE: ATO leaks reveal where gearing reforms will hurt most New research suggests upcoming housing investor taxes will have a less dramatic impact than many fear. Picture: UNSW / e61 Institute MORE: Retirement village shortage locks up family homes Visiting researchers at the University of NSW identified that the CGT reform would ultimately leave retirees worse off when using property to fund their later years. “This change is particularly aimed at people selling property in low-income years – who are often retirees,” researchers Nick Garvin and Elyse Dwyer ...