A new Capital Gains Tax report from the Australia Institute shows the government is missing out on $46 billion in revenue every year by allowing an exemption on the family home.
The report says limiting the exemption to houses valued under $2 million would still draw nearly $12 billion in new revenue over four years.
The Housing Industry Association opposes the move saying it could lead to a shortage of homes.
Independent Senator Nick Xenophon says any lifting of exemptions need to be done very carefully because each state's housing market is unique.
"The housing market in Sydney is very different from the housing market in Adelaide or Hobart for instance so it needs to be calibrated and done carefully but I know from my discussions with the Australia Institute this morning with their CEO Ben Oquist, that the Capital Gains Tax exemption is currently costing $46 billion dollars a year on the family home. I'm not saying we should get rid of that but I'm saying that maybe it needs to be calibrated on homes of more than $2 million in a very careful and cautious way."
