Labor tax grabs in search of a purpose

 

As part of Bill Shorten’s attack on business he plans to increase the Capital Gains Tax by 50 percent.

He would have people believe that this would only be for housing. It is not. The CGT increase would burrow into the economy in ways that Mr Shorten would prefer people and businesses not to know.

It is a tax change on the broader economy by stealth.

Labor will increase the capital gains tax rate by 50 per cent on the following asset types:

  1. shares in a company
  2. units in a unit trust
  3. rights and options
  4. trust distributions
  5. convertible notes
  6. licences
  7. contractible rights
  8. collectables
  9. jewellery
  10. artwork
  11. the right to enforce a contractual obligation
  12. foreign currency
  13. interest in a partnership asset
  14. interest in a partnership that is not an interest in a partnership asset

Mr Shorten thinks that increasing taxes on these investments will “help level the playing field for first home buyers competing with investors.” but what it will do is undermine discreet sectors of the business community.

Mr Shorten’s anti-business campaign is not empty campaign rhetoric, it has serious economic consequences – consequences the country could ill-afford if Labor wins the next election.

Labor’s changes would be bad for business, bad for investment and bad for jobs.