The Australian Treasury has acknowledged a significant calculation error in its draft legislation for the new capital gains tax regime.
The mistake, which involved an $88,000 discrepancy in a case study example, was identified by tax lawyers and accountants reviewing the explanatory memorandum attached to the proposed laws.
The error highlights the intricate nature of the government’s proposed do-it-yourself valuation method, which has already drawn sharp criticism from accounting professionals.
Critics argue that the nine-step formula is overly complex and risks creating confusion for taxpayers attempting to navigate the new rules.
The admission of the mistake adds to concerns about the clarity and practicality of the legislation.
Treasurer Jim Chalmers’ office released the documents amid a push to advance the tax changes through parliament.