Australia news live: Jetstar to charge passengers for overhead baggage; Labor drops so-called ‘widow tax’
The Australian government has announced it will drop the 'widow tax' from its upcoming tax reforms following public and political pressure. The change ensures that property transfers due to death or divorce will not trigger the loss of grandfathered negative gearing and capital gains tax concessions.
Why it matters
This adjustment addresses concerns regarding the fairness of tax policy for individuals experiencing significant life events, reflecting the government's responsiveness to legislative feedback.
Government drops ‘widow tax’ on negative gearing and capital gains changes
Labor has announced it will drop the so-called “widow tax” in its next tranche of tax reforms after widespread pressure from the opposition and crossbench.
Under the reforms to negative gearing and the capital gains tax discount announced in the May budget, a widow or divorcee would have lost their tax concession – which Labor promised to fix under subsequent legislation.
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