“Mr Andrew Skinner remarked that this mechanism is no longer equitable and should be phased out: My suggestion is that it is no longer equitable, and it is no longer consistent with the philosophy of taxing capital gains, to allow a 50 per cent discount after 12 months and a day. So after 12 months and a day you can sell a property, and that is effectively giving you 25 per cent more if you are on the top marginal rate. My suggestion is a sliding scale—a very simple five per cent per year reduction in the amount of capital gains assessable. It starts at 100 per cent and goes down to zero after 20 years of completed ownership. The reason for this is to try, once again, to start levelling the playing field. At the moment the playing field is very disproportional: capital gains are very concessionally taxed, while income is very highly taxed.”

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