Evans, Chris --- "Curing Affluenza?: A Critique of Recent Changes to the Taxation of Capital Gains in Australia" [2000] UNSWLawJl 40; (2000) 23(2) UNSW Law Journal 299

^[$] Af-flu-en-za . 1. The bloated, sluggish and unfulfilled feeling that results from efforts to keep up with the Joneses. 2. An epidemic of stress, overwork, waste and indebtedness caused by dogged pursuit of the American dream. 3. An unsustainable addiction to economic growth. Available at <www.pbs.org/kcts/affluenza/index.html>.

^[*] BSc (Hons) Econ (University of London), MA (Leicester University), Associate Professor of Taxation and Associate Director of the Australian Taxation Studies Program ("ATAX"), UNSW.

[1] New Zealand remains the notable exception.

[2] Though trusts will lose the benefit of this discount for assets acquired on or after 23 December 1999 where the asset is disposed of on or after 1 July 2001: Australia, Review of Business Taxation, A Tax System Redesigned: More Certain, Equitable and Durable, July 1999 (“Ralph Review”).

[3] The freezing of indexation at 30 September 1999, and the removal of averaging from 21 September 1999, has the effect of clawing back part of the tax cut. But, in a time of relative low inflation, the claw back is not significant.

[4] KLM Carter, Royal Commission on Taxation Report, 1966 at 9-10.

[5] Assets must be held for one year before they attract the CGT discount.

[6] Where a small business taxpayer has held an active asset for at least 15 years, complete exemption of the capital gain may be available.

[7] KW Asprey, Taxation Review Committee, Full Report, 1975.

[8] Ralph Review, note 2 supra at 732 (Table 24.10).

[9] Ibid at 731.

[10] Based on 1998-99 gross PAYE receipts.

[11] LE Burman, The Labyrinth of Capital Gains Tax Policy: A Guide for the Perplexed, Brookings Institution Press (1999) p 59.

[12] Dr Jane Gravelle and Professor Alan Auerbach, both cited in Senate Finance and Public Administration References Committee, Inquiry into Business Taxation Reform, November 1999, particularly at 30.

[13] C Evans, C Sandford, “CGT - The Unprincipled Tax” (1999) 5 British Tax Review.

[14] There are grounds for believing that this section of the population may be suffering the delusional symptoms of sudden wealth syndrome - a condition that can rapidly disappear in response to fluctuations on the ASX and NASDAQ.