Cuts to CGT discount on super mooted for income tax cuts

THE Federal Government is contemplating halving the capital gains tax discount for superannuation funds, in its quest to find money to fund income tax cuts.

If it does, it would appear to be at odds with the Prime Minister's bold declaration to Parliament that: "Increasing capital gains tax is no part of our thinking whatsoever."

Malcolm Turnbull made the statement in a swingeing attack on Labor's policies to limit tax deductions on investment properties to new homes and to halve the capital gains tax discount on assets held for more than a year from 50 per cent to 25 per cent.

On capital gains, Mr Turnbull said the change would hammer investors because the tax on their real gain after inflation would be 70 per cent.

"Nothing could be more calculated to put the brakes on investment, jobs and growth," he said.

Read more at ABC News Online

Topics:  superannuation

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