ok we've probably all heard of the above in the media in recent days. Surely this is a distraction tactic by the budget spin doctors ? To me its an unfathomable concept, especially the part of even considering having a threshold of the surplus (note its not a profit!). Primary residence cannot be treated like an investment or a business. We pay enough tax all our lives. There certainly will be huge protests and campaigns if this progreses. A lot of our plan is based on empty-nesting in around 10 to 12 years time and downsizing once the offspring are well out of college (assuming they go). Yes, we are primarily asset rich and quite cash poor at the end of the day, so this rumour is not going down well here that's for sure.