Labor unveils 'widow tax' fix after negative gearing backlash
The Australian Labor government is proposing legislative changes to prevent individuals who inherit investment properties from their spouses from losing negative gearing tax benefits. This move addresses an unintended consequence of recent tax reforms that critics dubbed a 'widow tax'.
Why it matters
It highlights the complexities of tax policy reform and the government's responsiveness to public and political pressure regarding housing affordability and fairness.
Jim Chalmers says the proposed legislation would ensure Labor’s tax changes applied to people in a range of circumstances. ( ABC News: Ian Cutmore )
Labor has proposed changes to ensure people who inherit an investment property from a spouse do not lose existing access to negative gearing.
The government is also consulting on carve-outs and changes covering newly built homes, affordable and disability housing and its new capital gains tax system.
The public has two weeks to give feedback on the proposal and Labor is flagging further tranches of legislation implementing its tax changes.
Link copied Share Share article Australians who inherit an investment property from their spouse will not lose any existing negative gearing access under changes proposed by Labor to fix the so-called "widow tax".
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