The Impact Of Capital Gains Tax On Residential Property Investment Essay

The Impact Of Capital Gains Tax On Residential Property Investment Performance And Viability In Australia - Essay Example Net losses in a tax year may be carried forward, but not offset against income. Personal use assets and collectables are treated as separate categories and losses on those are quarantined so they can only be applied against gains in the same category, not other gains. This works to stop taxpayers subsidizing hobbies from their investment earnings. (Wikipedia). This study will include the impact of CGT on Residencial Property Investment Performance and viability in Australia. Some organizations believe that because of this capital gains tax the increasing number of house affordability is alarming. Only a small percentage of family can now be able to afford houses. Instead they resort on renting it, still it is not that affordable to rent one. This high cost of housing is because of the capital gains tax in Australian. However to some investors it has a positive effect on their business. Capital Gain Tax as defined by Australian Taxation Office as the tax that you pay on any capital gain you include on your annual income tax return. It is not a separate tax, merely a component of your income tax. Your are taxed on your net capital gain at your marginal tax rate. All residential properties are subjected to capital gains tax. To those family that owns one or more properties the capital gain tax is complicated for them. Even if they uses the name of their spouse the said property is still subjected to capital gain tax. The Construction, Forestry, Mining and Energy Union - Construction and General Division, the CFMEU believes that Australia is in the grip of a housing crisis. This crisis is not only characterized by declining affordability in first home ownership, but by increasing levels of housing stress among low to middle income participants in the private rental market, the degradation and running down of public housing stock across Australia, and finally, by growi ng levels of homelessness in the community. The Union believes that this trend comes at a time when a select few have grown more and more wealthy off the back of a speculative boom in house and land prices, that serves to make the already well off even more affluent, while locking many ordinary Australians out of home ownership, and affordable rental housing. The Union bases its view on several important studies over the recent period, including work done by the Affordable Housing National Research Consortium, of which the Union was a part. However there are still residential properties which are exempted in the tax. This may have a positive effect to those who owns only one property but to some who has 2 or more property the capital gains tax is a burden for them. Impact of Capital Gains Tax to Residential Property in Australia As per described above one main impact of capital gain tax is the increasing number of non-affordability of renting and owning a house. Confusion on the application of the capital gain tax is also another reason of this. There are cases where in the property is not subjected to capital gain tax because of some exemptions which are further discuss in this paper. Factors Determining Application of

Reflective Responses Assignment Example | Topics and Well Written Essays - 1500 words

Reflective Responses - Assignment Example Likewise in an organization power is formal, comes to an individual through the position he holds in the organization (Robbins et al 2001), it demands obedience from subordinates to the commands given by his superior, irrespective of subordinates personal goals and interests and his legitimacy of power comes from authority he exerts (PPK 2013). However Weber also pointed out that just because he holds the position, the position power does not become his property rather it is the relationship between him and the subordinate and how he is able to exert his authority (PPK 2013). Because I have seen that even though individuals hold same position in an organization they do not have the same influence on their subordinates. It shows that position in an organization gives power however it is the relationship between the superior and the subordinate that actually defines it and make it effective. ... n is also relevant as of some of the most successful organizations is a result of their charismatic leaders who played a central role (PPK 2013) for example Bill Gates CEO of Microsoft, Steve Jobs former CEO of Apple etc., whose charismatic leadership not only resulted in one of the most successful products and services but also motivated and brought out the innovative qualities of their employees and used their creativity for a common goal that is organizational success. Their charismatic leadership and vision helped in establishing such huge and successful companies that are known for delivering innovative products with high quality example iPhone, iPad by Apple and Windows by Microsoft. †¢ â€Å"The most basic prerequisite of power is that one person or group believes it is dependent on another person or group for a resource of value† (McShane et al 2013, p.318). Reflect on this claim from a critical perspective, and illustrate your answer with a real-life example deri ved from PPK materials or from your own experience or observation. Power is definitely a function of dependency, the greater an individual depends upon other for a resource of value, and the greater the other person has power over the individual in a relationship. One person can exert power on another only when that person controls something valuable that is desired by another. For example in an organization a superior enjoys power over subordinates because through his position controls their rewards which subordinates consider as valuable and thus their behaviour is influenced because of that dependency. Reward can be in financial or non-financial (Robbins et al 2001). It is not only true in organizational perspective but also true in personal relationships. For example when children are dependent