Former Prime Minister Paul Keating has urged the Labor government to maintain its controversial changes to capital gains tax (CGT), cautioning that exempting commercial assets would further distort the economy. In an interview with Guardian Australia, Keating stated that the current CGT settings, in place since 1999, have negatively impacted productive investment by diverting financial resources toward housing, particularly established properties.
Keating's Warning on Economic Distortion
Keating emphasized that the government's proposed shift from a 50% CGT discount to an inflation-based model is a necessary reform. He argued that exempting commercial assets would create new distortions, undermining the intended benefits of the policy. 'The shift in capital taxation under the new arrangements is so marginal that no entrepreneurial initiative is likely to be thwarted by it,' Keating said.
The former prime minister's comments come as small businesses and the startup sector oppose the changes, which were announced in this month's federal budget. Legislation for the reforms is set to be introduced in parliament on Thursday.
Inflation Eases to 4.2%
In other news, Australia's inflation rate has eased to 4.2%, though economists warn that an interest rate rise may still be on the horizon. The moderation in inflation provides some relief for households and businesses, but the Reserve Bank remains cautious about underlying price pressures.
Other Top Stories
- Police were outgunned during the Bondi beach massacre due to a lack of long-arm rifles, a royal commission heard.
- Justin Stevens has resigned as ABC director of news after four years in the role.
- In the US, Trump-backed Ken Paxton ousted John Cornyn in a heated Texas primary after a scandal-plagued campaign.
- A dog shot a woman with a shotgun at a Nebraska convenience store, in an unusual incident.
Environmental Update
Researchers racing to document Oceania's last tropical glaciers found that the remaining 'eternal snow' in Indonesia's West Papua region has lost almost all its ice. The sombre footage captures 'planetary destruction on fast-forward,' highlighting the urgent need for climate action.
Political Commentary
Independent Senator David Pocock expressed bewilderment over proposed online advertising restrictions on gambling ads. Under the new rules, live read podcast sponsorships would be included, even for users who have opted out. 'That is bonkers,' Pocock said.
International News
Israel has ended its decades-long moratorium on capital punishment, passing two laws in the past two months that apply the death penalty seemingly only to Palestinians. The move has sparked debate about the country's justice system.
Cultural Feature
Japan's feline fixation has become a multibillion-dollar industry, with 'catnomics' influencing everything from tourism to retail. Tokyo even has its own 'cat town,' showcasing the country's deep affection for cats.
