Inquiry into the Operation of the Capital Gains Tax Discount
The Abundant Housing Network Australia supports the Committeeʼs move to reduce the Capital Gains Tax discount.
The Abundant Housing Network Australia supports the Committee’s move to reduce the Capital Gains Tax discount.
We urge the Commonwealth Government to follow the evidence and reduce the discount rate. There are strong merits to reforming the capital gains discount on tax and budget policy grounds.
However, we caution that changes to current CGT settings will not make a meaningful difference to housing affordability. The evidence for affordability impacts of the capital gains tax discount is weak. Changes to the tax system should be considered a matter of tax policy alone. They do not and will not constitute a meaningful housing policy.
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