In what can only be described as homicidal economic science, Bill Shorten and Labor want to eradicate all negative gearing, except for new home constructions and reduce the capital gains tax discount from 50% to 25% (applying to assets held for more than a year). To make things really explosive, Shorten also announced that none of the changes would apply to properties purchased before July 2017.
Apparently, Shorten thinks this will solve the housing affordability ‘crisis’ while giving the government an extra $3 billion a year to play with. In other words, nowhere near enough money to solve the budget catastrophe but plenty enough to wreak havoc on everyday people’s lives and create complete uncertainty in the economy.
The Marcus Review 