Property Bubble & CGT Measures as a Tool of Control of Escalating Property Prices?

Posted by: Tony Allen

Almost every day we read reports of concerns about the property bubbles in Sydney and Melbourne and of government investigations into breaches of the Foreign Investment Review Board investment rules. Click Here for report by ABC. It would seem that Australia is not the only country to be concerned about escalating residential property prices and the need to consider counter measures.

It has been reported that last Friday, 6 June 2015, the Taiwanese Legislative Yuan [parliament] passed a tax reform bill that will impose a capital gains tax [CGT] of up to 45 percent on profits made on the sale of property. The new tax plan, which is scheduled to take effect on Jan. 1, 2016, was expressed to form part of the government's efforts to rein in high residential housing prices and represents a major change from current practices. Click here for report by Central News Agency.

It will be interesting to see if the Australian government considers this CGT lead, whether in whole or in part, as a suitable counter measure to the escalating property prices around Australia.