Changes to Capital Gains Taxation Announced in Budget 2024
Federal Government Proposes Increase in Inclusion Rate
Details of the Proposed Changes
In its recently released Budget 2024, the federal government has proposed significant changes to capital gains taxation. The key change is an increase in the capital gains inclusion rate, which determines the portion of capital gains that is subject to tax.
Currently, the capital gains inclusion rate is 50%. This means that only half of any capital gains are included in a taxpayer's income for tax purposes. The proposed changes would increase the inclusion rate to 66.67%. This means that two-thirds of any capital gains would be subject to tax.
The changes would apply to capital gains realized on or after January 1, 2024. The proposed changes are part of the government's plan to make the tax system fairer and more equitable.
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