CGT not to be imposed on family home

Treasury Secretary Ken Henry has dismissed rumours that a capital gains tax (CGT) could be imposed on the family home.

“Imposing capital gains tax on the family home was not on the cards, just as it wasn’t in 1985, despite hysterical suggestions to the contrary. Scare campaigns about taxing the family home were just as diabolical and plain wrong then as they are now,” Dr Henry was reported as saying in the Financial Review.

President of the Real Estate Institute of Australia (REIA), David Airey, welcomed Dr Henry’s clarification.

“Comments attributed to Dr Henry … clarify irrevocably that CGT will not be imposed on the family home and has never even been on the Government’s agenda,” he said.

In August, The Australian reported that the Rudd Government was considering a tax on expensive family homes as part of the tax review being carried out by Dr Henry and his team. Despite the government distancing themselves from such speculation, rumours have continued to swirl but have now been all but knocked on the head.

The tax review will be released in December.

Posted Wednesday 21st of October 2009, 1:46 PM