Jim Chalmers should dust off Ken Henry’s CGT reform plan
The 2010 tax review recommendation to lower the 50 per cent discount was part of a package of changes seeking to reduce the disparity in taxation of different forms of saving.
Expectations are rising that changes to the taxation of capital gains will form part of the May federal budget.
Any change to the taxation of capital gains should come as part of a reform package that seeks to tax different forms of savings more consistently. Calls to reduce the capital gains discount as a revenue measure alone, or simply to target rental investors, are a missed opportunity for broader reform.
