Australians are evenly divided on the government's capital gains tax (CGT) changes, with a new survey revealing a net approval rating of zero as 36 per cent support the measure and 36 per cent oppose it.
The Australian Financial Review (AFR) survey found changes to the CGT discount were the least popular part of the new federal budget, while limiting future negative gearing had a net approval rating of just 7 per cent.
Most voters believe the government should focus on cutting spending instead of making changes to negative gearing, capital gains tax and trusts, according to the research.
Housing Minister Defends Budget Measures
Housing Minister Clare O'Neil defended the budget measures, saying the government was willing to make hard calls for the country.
“If you’re looking around Australia and thinking everything’s going perfectly right now, maybe this is not the budget for you,” O'Neil told Sunrise on Wednesday.
“I see a country with a broken housing market, a budget that is heaving with the weight of an ageing population, additional defence needs and a national disability insurance scheme that’s not working properly for the country.”
O'Neill said the budget would deliver tax cuts for every Australian worker and make significant changes to housing to help more Australians into first home ownership.
“In politics, you don’t do the popular thing, you do the right thing. That is our obligation as politicians for this country,” she said.
Liberal Senator Slams 'Toxic Taxes'
Liberal Senator Michaelia Cash accused the government of breaking election promises by introducing “toxic taxes” that will stifle Australian businesses.
“The more Australians hear about these toxic taxes that the Anthony Albanese government is proposing, the more they don’t like them,” Cash said.
“This is nothing more and nothing less than a tax on aspiration, a tax on Australians taking risk, and a tax on innovation.”
The AFR survey found 50 per cent of people believed it was acceptable to break a promise if it was a tough decision in the national interest, compared to 37 per cent who disagreed.
CBA CEO Issues Warning
It comes after Commonwealth Bank CEO Matt Comyn issued an urgent warning over the CGT changes. He suggested the changes should only apply to non-passive assets like housing instead of small businesses and shares, fearing it could stifle new innovation.
O'Neil said the government was consulting with small business about how the tax changes would affect them, particularly for businesses that start with a value of zero and grow significantly over a short period.
“We understood that before the budget. It’s actually in the budget papers,” she said. “We’re going to work through and consult with business on this. And that’s exactly what a good government would do.”
