Tax executive summary

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Contributors

This report is the work of the Science Party. People who have worked on this document include:

Andrea Leong - Review
Brendon Brewer - Review
Cory Bill - Review
David Rosson - Review
James Jansson - Capital Gains Tax, Land Value Tax, and Review
Jordan Rastrick - Capital Gains Tax and Review
Markus Pfister - Executive Summary, Formatting and Review
Poker Chen - Review
Tom Byrt - Superannuation and Review

The Science Party believes that there are a number of reforms that the government can undertake to improve the taxation system, making it fairer and increasing revenue for important projects. These reforms are aimed at reducing opportunities for tax minimisation through investment and superannuation. Doing so will end the distortionary taxation treatment of certain assets, which have lead to great increases in the price of some assets  in particular, housing. Many of these changes have been suggested previously Australia's Future Tax System Review (known generally as the Henry Tax Review). We believe it is time that the government implemented these improvements to the tax system to end these minimisation strategies.

Capital Gains Tax Discount & Negative Gearing

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  • Abolish the 50%, 12-month discount
  • Restore the CPI-indexation of capital gains
  • Retain negative gearing
  • Investigate ways to reduce “lumpiness” for more equitable taxing of capital gains
  • Tax capital gains on owner-occupied and investment properties equally
  • Apply a CPI deduction to interest on bank accounts, such that only interest above CPI is taxed

Land Value Tax

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  • Introduce a Land Value Tax on the unimproved capital value of land
  • Abolish Stamp Duty

Superannuation

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  • Place a cap on accumulated super of $2 million (CPI-indexed) per person
  • Remove non-concessional contribution caps for over-50s