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Labor appears set to reform capital gains tax discount after parliamentary inquiry findings
Report reveals the Howard-era settings are helping fuel intergenerational inequality in Australia’s housing market
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Labor has given one of its strongest signals yet the capital gains tax discount will be reworked in the May budget, with a parliamentary inquiry finding the Howard-era settings are helping fuel intergenerational inequality in Australia’s housing market.
A Greens-led parliamentary inquiry said the 50% discount “skewed the ownership of housing away from owner-occupiers and towards investors”.
“The benefits of the capital gains tax discount are also unequally distributed, with implications for income and wealth inequality and intergenerational inequality,” the report released on Tuesday found.
Capital gains tax discount ‘skewed’ housing towards investors: Senate inquiry
Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
University of Canberra provides funding as a member of The Conversation AU.
A Senate inquiry has provided Treasurer Jim Chalmers with ammunition for his plan to pare back the capital gains tax discount in the May 12 budget.
The majority report of the inquiry into the operation of the capital gains tax discount, tabled Tuesday, concluded that while various factors influenced housing markets, there was evidence the discount, combined with negative gearing, had “skewed the ownership of housing away from owner-occupiers and towards investors”.
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