The government is working on changes to capital gains tax despite senior figures’ insistence it has not formed a proposal or intention to do so, Liberal MP John Alexander has said.
Responding to the comments the finance minister, Mathias Cormann, has again rejected the suggestion the government could cut the capital gains tax discount.
Last week the Australian Financial Review reported that the government was considering reducing the 50% CGT concession for property investors, in a major about-face, or increasing the length of time a property would have to be owned before it was eligible for the concession.
On Thursday Malcolm Turnbull moved to shut down the suggestion, saying the government had “no intention or plan to change capital gains tax or negative gearing”.
But Alexander told Sky News on Sunday that the prime minister’s statement did not mean CGT changes were off the table.
“I think, again, listen to the words very carefully. When our prime minister says ‘we have no plans’ that is correct,” he said “Are we working on plans? Yes we are.
“And are those in our party who are promoting that as another issue that could be addressed, I think the answer is yes, we’re looking at that also.”
Alexander also said the government should look again at negative gearing but stopped short of endorsing Labor’s plans to abolish it.
He said it was a “a dynamic tool and it can be used to slow a car down or speed the market up”, in reference to his plan to change rates of tax deductibility in response to market conditions.
“People buying a home should be competing with other people buying a home, not wealthy investors with tax-favoured concessions.”
The assistant treasurer, Michael Sukkar, who has responsibility for housing affordability, told Sky News on Sunday that there were “literally dozens of different ideas” generated by the government and public service on the issue.
Sukkar said he would not engage in a process of “ruling in or out” individual changes because a housing affordability package could contain multiple “finely calibrated” measures.
He repeated that there was “no proposal or intention” to change CGT.
Asked about Alexander’s comments on Monday Cormann told ABC’s AM “there is no such proposal in front of the government”.
“We went to the last election promising no increases in taxes on investment – specifically, no reduction in the capital gains tax discount, no changes to negative gearing – we stick to our commitments.
“I’m not working on any plans – I can assure you.”
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