A new survey reveals Australians are evenly divided on the government's capital gains tax (CGT) changes, with a net approval rating of zero. The Australian Financial Review (AFR) survey found 36 per cent support the measure and 36 per cent oppose it.
The changes to the CGT discount were the least popular part of the new federal budget, while limiting future negative gearing had a net approval rating of just 7 per cent. Most voters believe the government should focus on cutting spending rather than altering negative gearing, capital gains tax and trusts.
Housing Minister Clare O'Neil defended the measures, stating the government is willing to make hard calls for the country. 'If you're looking around Australia and thinking everything's going perfectly right now, maybe this is not the budget for you,' O'Neil told Sunrise on Wednesday. She said the budget would deliver tax cuts for every Australian worker and make significant housing changes to help more Australians into first home ownership.
Liberal Senator Michaelia Cash accused the government of breaking election promises by introducing 'toxic taxes' that will stifle Australian businesses. 'The more Australians hear about these toxic taxes that the Anthony Albanese government is proposing, the more they don't like them,' Cash said.
The AFR survey also found 50 per cent of people believed it was acceptable to break a promise if it was a tough decision in the national interest, compared to 37 per cent who disagreed. Commonwealth Bank CEO Matt Comyn issued an urgent warning over the CGT changes, suggesting they should only apply to non-passive assets like housing instead of small businesses and shares.
O'Neil said the government is consulting with small businesses about how the tax changes will affect them, particularly for businesses that start with a value of zero and grow significantly over a short period. 'We understood that before the budget. It's actually in the budget papers. We're going to work through and consult with business on this,' she said.
