The debate centres on a major overhaul that replaced the long-standing 50 per cent CGT discount with an inflation-indexed deduction and a minimum 30 per cent tax rate. The reforms sparked fierce debate over the impacts on investment, small-business viability, and broken political promises – and now luxury products, including jewellery.
During a recent Senate Question Time, Liberal Senator Maria Kovacic questioned how jewellery, watches, artwork, and other non-market assets would be valued under Labor's proposed CGT reforms. Kovacic asked Senator Penny Wong to confirm that inherited jewellery, wedding rings, watches, and artwork would be exempt from valuation under the proposed reforms.
Wong stated the reforms would apply uniform rules to all assets to ensure simplicity and fairness. She did not address the valuation issue and instead criticised the opposition, prompting points of order from opposition senators.
If passed, the Treasury Laws Amendment Bill would overhaul the CGT system from 1 July 2027. Leah Blyth, shadow assistant minister, criticised the government for breaking its tax pledge.
“No one voted for these new taxes. The Prime Minister promised, in his own words, more than 50 times before the last election that he would not introduce them,” she said.
“In a complete act of bad faith and disregard for all Australians, he's turned around and broken every single one of those commitments.”
Opposition senators also criticised the CGT changes as harmful to aspiration and economic opportunity. Pressure on renters, first-home buyers, small businesses and investors is expected to increase, reflecting concerns over poor fiscal management.
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