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Campaign to expose Labor's CGT tax slug.



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THE HON PETER REITH MP

MINISTER FOR WORKPLACE RELATIONS AND SMALL BUSINESS

LEADER OF THE HOUSE OF REPRESENTATIVES

 

PARLIAMENT HOUSE

CANBERRA ACT 2600

 

17 September 1998

140/98

 

CAMPAIGN TO EXPOSE LABOR’S CGT TAX SLUG

 

Labor’s new Capital Gains Tax is be coming a huge liability for Kim Beazley and Gareth Evans in the election campaign.

 

Mr Evans is unable to explain the details of his new CGT, which retrospectively imposes a tax on pre 1985 assets such as businesses, farms, investment properties, holiday houses, collectibles, goodwill and even valuable personal possessions.

 

All assets, which were previously exempt, will need to be valued as January 1, 1999. This will impose significant costs and generate huge anxiety in the community.

 

Literally hundreds of thousands of business operators who have structured their financial affairs around a rock solid guarantee that pre 1985 assets would not be subject to CGT are now faced with the huge cost of getting valuations and of restructuring their retirement plans.

 

Labor’s retrospective CGT has been a sleeper in the campaign until now, but as more people realise the impact of this tax they will start to call Kim Beazley and Gareth Evans to account and demand answers.

 

Under pressure Mr Evans cobbled up valuation methods on the run which have been exposed as a farce.

 

As the Australian Property Institute, which represents Australian Valuers, has stated “Mr Evans... has obviously been ill advised” when it comes to valuations of pre 1985 assets.

 

“It is a great pity that Mr Evans had not consulted the Institute before making his statement”, the National President of the API said on September 8.

 

Today the Liberal Party will be launching a campaign to force Mr Evans to answers the questions that he has been ducking on Labor’s retrospective CGT. The campaign will feature billboards, television and radio advertising raising the questions that the small business community is demanding answers for.

 

Questions such as: what records will you need, how much will it cost to get your possessions valued, how much will the CGT reduce the value of what you leave your children and more.

 

For further information contact: Ian Hanke on 0419 484 095

 

 

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