Modelling shows 90% of young Australians will be better off under Labor’s tax reforms
Summary
The Albanese government’s proposed tax reforms are expected to financially benefit 90% of young Australians, according to Treasury modelling. The changes include a $1,000 tax deduction, a $250 tax offset for working Australians, and updates to capital gains tax and negative gearing rules.Key Facts
- Treasury modelling shows 90% of young Australians will gain from the new tax reforms.
- The reforms include a $1,000 automatic tax deduction and a $250 working Australians tax offset (Wato).
- Capital gains tax and negative gearing rules are also being changed as part of the reforms.
- Young people in the top 10% of lifetime income are expected to pay more tax under the new system.
- The proportion of property investors under 40 has dropped from 35% in 2000 to about 20% in 2023.
- Only about 10% of Australians under 35 own shares, according to tax office data.
- Some critics worry people with large share investments might pay more tax, but Treasury says investors will still benefit after tax.
- Labor faces internal disagreements over whether to give exemptions for small or start-up businesses affected by the capital gains tax changes.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.