Government Senator says the family home should no longer be exempt from capital gains tax

The family home should no longer by exempt from capital gains tax, according to one government senator.

Liberal National Party Senator, Gerard Rennick, said too much money had become stuck in the housing market at the expense of business.

He’s proposing a tax on homes worth more than $2 million.

“If you bought a house in 1970 for $100,000 and you sold it today for $2.5 million, you’d be taxed on the $500,000 above $2 million at 20 cents,” Senator Rennick explained on 3AW Mornings.

“So you’d pay $100,000 on the $2.5 million sale.

“Now, any money raised through that should go into lowering income tax rates, particularly at the low levels.

“I think it’s much fairer.”

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