The winner in the CGT change debate

In the face of proposed changes to capital gains and negative gearing, DIY funds have the most to gain.

Summary: Labor’s proposed changes to negative gearing and capital gains tax would likely have a lesser effect on DIY fund holders than investors buying assets outside of super. Because superannuation tax rates look likely to stay as they are, those who buy property through their super would be doing so in a lower tax environment than those investing after July 1, 2017, should new negative gearing restrictions and a cut to the capital gains tax discount come into effect. While the Coalition’s plans in this area are less clear, if there was a plan to implement a cap on the number of properties or dollar value that could be negatively geared, DIY fund holders would still be in a more favourable position.

Key take out: SMSFs will come out on top if either side makes changes to negative gearing or CGT rules.

Key beneficiaries: Superannuation accountholders and SMSF trustees. Category: Superannuation.

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