The Albanese government is reportedly weighing a contentious new policy that could see pensioners hit with capital gains tax (CGT) on their family homes. The proposal, still under discussion, has ignited fierce debate over its potential financial burden on retirees.
Why This Proposal Is Sparking Outrage
Under current rules, primary residences are exempt from CGT when sold. However, the new plan could remove this exemption for pensioners, forcing them to pay tax on any profit made from selling their homes. Critics argue this would unfairly target older Australians who rely on property as a key asset in retirement.
Who Could Be Affected?
The policy, if implemented, would primarily impact:
- Pensioners selling long-held family homes
- Retirees downsizing or relocating
- Those using property equity to fund aged care
Government's Stance and Public Backlash
While Treasury officials reportedly support the measure as a way to boost revenue, backbenchers within the Labor Party have raised concerns about its political fallout. Financial experts warn that taxing the family home could discourage downsizing, exacerbating housing shortages.
Key concerns include:
- Reduced mobility in the property market
- Potential devaluation of retirement savings
- Increased complexity in estate planning
What Happens Next?
The proposal remains at the discussion stage, with no formal policy announced. However, the mere suggestion has already generated significant public debate about intergenerational fairness and retirement security in Australia's tax system.
