Reports over the weekend suggesting that reducing the capital gains tax (CGT) discount would see rents surge, are in the words of Kevin Rudd, “complete bunkum”. The current arrangements over-compensate for inflation, the benefits flow disproportionately to higher-income earners, and the concession punches a sizeable hole in the budget.
When analysing tax reform, the best approach is to look past vested interests and instead focus on credible, non-partisan independent institutions that have done the research and analysis. Their conclusions are that there is a strong case for CGT reform. But tax reform can’t be about just increasing taxes. It’s got to restore intergenerational fairness and ensure younger workers can get ahead.
