The discussions around the absurdly small changes to tax on superannuation should be the start to addressing the growing wealth inequality in this country
After a threshold. You don’t want to tax some poor pensioner who has lived in the same 2-bedroom cottage in Carlton for 60 years, simply because that location is now worth $2Million.
And now it’s complicated. How do you find that threshold?
If it’s per-person, you’ll find rich people divvying up their portfolios to family members to distribute this tax benefit.
If you grandfather it in so it only affects future property purchases, you disincentivise retirees from downsizing to a smaller place, freeing up some 4-bedroom house.
Yeah, normally I’m more precise with my language. Personally, I’m an American, and property taxes are just a thing for everyone. Definitely not the best, but it sounds like Australia doesn’t have that for some reason?
After a threshold. You don’t want to tax some poor pensioner who has lived in the same 2-bedroom cottage in Carlton for 60 years, simply because that location is now worth $2Million.
And now it’s complicated. How do you find that threshold?
If it’s per-person, you’ll find rich people divvying up their portfolios to family members to distribute this tax benefit.
If you grandfather it in so it only affects future property purchases, you disincentivise retirees from downsizing to a smaller place, freeing up some 4-bedroom house.
Taxation policies are hard.
Yeah, normally I’m more precise with my language. Personally, I’m an American, and property taxes are just a thing for everyone. Definitely not the best, but it sounds like Australia doesn’t have that for some reason?