In news that is sure to embarrass Treasurer Joe Hockey, the Parliamentary Budget Office (PBO) – a body set up in 2012 to provide independent and non-partisan analysis of budget matters – has found that limiting negative gearing to new builds and cutting the capital gains tax (CGT) discount would save the budget $9 billion over four years.
Under the proposal presented by the Greens, landlords who currently use negative gearing would be ‘grandfathered’ and allowed to continue doing so until they sold their properties. The CGT discount would also be cut from 50% to 40% in line with the recommendation from the Henry tax review. From The Canberra Times:
