Despite the government's pre-election commitment to maintain the current arrangements for negative gearing and the capital gains tax benefits, representatives at the forum are advocating for significant changes. Among these proposals, unions are pushing to restrict negative gearing to a single investment property per individual, while existing regulations may remain for the next five years. Additionally, a minimum tax rate of 25 percent for incomes exceeding $1 million annually has been proposed by union officials.
During the summit, tax expert Associate Professor Dale Boccabella emphasised the necessity of reevaluating capital gains and negative gearing policies as potential commitments for future electoral platforms. He criticised the current capital gains tax discount, highlighting its disproportionate benefit to the wealthiest individuals who may not require such significant tax relief.
Prof. Boccabella stressed the importance of ensuring the tax system's sustainability, linking it directly to the broader concept of fairness and addressing generational inequities. He argued that the government should not face criticism for pursuing negative gearing reforms, provided these actions are implemented in a sustainable and equitable manner.
Treasury Secretary Jenny Wilkinson is scheduled to present on budget sustainability during the summit's closing sessions. Meanwhile, Aruna Sathanapally, CEO of the Grattan Institute, will advocate for the development of a more effective tax system. Additional discussions are set to explore avenues for enhancing the efficiency of government services and expenditures.
According to Treasurer Jim Chalmers, these discussions have fostered consensus on crucial areas of economic reform. "We have already embarked on an ambitious agenda to reduce business burdens, cut red tape, and increase housing availability. However, we are committed to pursuing further advancements wherever feasible," Chalmers stated.
