Investors pay LT over a certain level because they are using the land to make a profit, seems fair.
LT on PPOR means that all retirees receive an ever increasing tax bill throughout their retirement.
We are supposed to be encouraging self funded retirees, but everywhere you look at the moment someone is trying to stick their hand their pockets.... (I am young and a long way from retirement, so this is not immediately self-serving.)
At some point those on the margins will just say screw it, I'm living off the government...
As for a LT transition, the only way that I see as fair would be if the stamp duty already paid is a credit and no LT is payable until this has been exhausted.
Back to the OP.
Your scenario will not help first home buyers as the boomers big houses are more targeted at middle age families.
But the idea of reduced SD for down sizers has merit.
What are the current schemes for downsizes? I've heard of them but not 100% across it as doesn't apply to me.
