Submission to Supporting older Australians – exempting granny flat arrangements from Capital Gains Tax (CGT)
CPSA understands the decision to not require specific terms to be included in granny flat arrangements in the interest of flexibility. However, there should be a requirement that all parties must be referred to materials that outline all possible negative outcomes, a sort of worst-case scenario list, before entering a granny flat arrangement. The negative outcomes list would aim to inform and encourage both parties to include solutions for negative outcomes in their granny flat arrangements. This list would inform people of what can go wrong with granny flat arrangements and serve as a reminder of the purpose of this legislative amendment, which is to prevent elder abuse.