In 2009 a report by the Brotherhood of St. Laurence and the Australian Housing and Urban Research Institute claimed this CGT exemption is worth on average $10,000 a year for the wealthiest 20 per cent of home owners, but worth just $1200 a year for the bottom 20 per cent of households. The suggestion is that it is unfair that those on the highest incomes are getting much more benefit than anyone else.
I predict that the Australian Government will place a cap of about $750,000 on the family home CGT exemption. In other words, only the first $750,000 from the proceeds of sale of the family home would be exempt from CGT. Everything over that sum would incur CGT at the usual rates.
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