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‘Destructive budget experiments’: One Nation pledges to unwind budget tax changes
Pauline Hanson has pledged a massive shake-up of property tax policy if One Nation forms government, with the party vowing to restore the 50 per cent CGT discount and negative gearing benefits for two investment properties.
One Nation has pledged to reverse Labor’s changes to the capital gains tax (CGT) discount and protect negative gearing for up to two investment properties if the party is elected at the next federal election.
Since the reforms were announced, property prices have dropped, resulting in a projected $30 billion hit to government revenues over four years, while around 34,000 first home buyers are at risk of negative equity.
In a statement published on Monday, Hanson labelled Labor’s tax changes as “destructive budget experiments” as she vowed to overturn the measures.
She confirmed that a One Nation government would restore the 50 per cent CGT discount, replacing the incoming cost-base indexation for assets held for more than 12 months and 30 per cent minimum tax on net capital gains.
In addition, she said One Nation would allow all investors to negatively gear up to two properties after Labor restricted negative gearing to only new builds and assets that applied under grandfathering exemptions.
“The status quo of allowing unlimited taxpayer concessions for property tycoons was not working for Australians,” she said.
One Nation’s election promises also include scrapping Labor’s proposed 30 per cent minimum tax on discretionary trusts and “fighting any plan” by Treasurer Jim Chalmers to impose death taxes on the family home.
Hanson said Australians should be able to work hard and get ahead, and that property investment was one way younger generations could get a foot into the market.
“It’s not enough that you already work several days a week to pay for Labor’s uncontrolled spending,” she said.
“One Nation will end this disastrous experiment and reverse Chalmers’ destructive budget experiments. And we will draw a line around the family home and stop any plans for Labor’s death taxes.”
Hanson also accused Treasurer Chalmers of having helped to “send the property market into free fall”, with property prices continuing to decline across capitals as the nationwide downturn continues.
There have been projections that some first home buyers who used Labor’s 5 per cent Deposit Scheme could fall into negative equity by the end of the year.
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“Already, more than 1,100 households who bought through Labor’s expanded 5 per cent Deposit Scheme are now estimated to owe more than their homes are worth,” Hanson said.
“Labor encouraged them into the market, then pulled the rug out from under them.”
Additionally, Hanson said Prime Minister Anthony Albanese had “pulled the ladder up behind him” on young people trying to break into the market, by protecting tax concessions for existing properties.
“This includes the Prime Minister’s own ocean view clifftop house in Copacabana, the hundreds of properties held by his own cabinet and the thousands of properties held by property tycoons,” she said.
“The Labor government must answer whether members of cabinet who benefited from grandfathering negative gearing concessions recused themselves from voting on the measures given their conflict of interest.”
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