Capital Gains Tax: How major tax break that has helped Boomers get rich is now in Jim Chalmers’ crosshairs

Not much beyond the title in the Daily Mail article. The only relevant bit IMO is the below from the ACTU:

> Peak union group the ACTU has also called for the CGT discount to be wound back from 50 per cent to 25 per cent.

> ACTU president Michele O’Neil said reforming the discount was critical to tackling Australia’s housing crisis, alongside limiting negative gearing to a single investment property.

> ‘Both these changes should apply to new housing investments, leaving the existing CGT discount and negative gearing arrangements in place for up to five years before being phased out, giving people time to adjust,’ she said.

Seems similar to what they’ve pushed for in the past, so may be a look into what we’ll see from Lab.

Also sorry for the Daily Mail article. The AFR article is pay walled (and was blocked here anyway) and the only other source I saw was Sky News.

AFR article/Primary source: https://www.afr.com/politics/federal/changes-to-cgt-discount-under-consideration-as-reform-budget-looms-20260203-p5nz1a

Yep, gotta go after things that are fairer for the average Australian. Too much transfer of wealth happening right now from poor to rich. Of course, would prefer to see it come from large companies first, but this, and especially negative gearing, should be reformed for the modern economy.

Honestly it’s now or never, whilst the opposition is in shambles and with control over the seats labor needs swing the axe.

This is the perfect opportunity for wholesale tax reform. You’ve got a big majority, the opposition is fractured, Labor is now seen as the better economic manager (52 v 48, but still…), and the only real threat you face is from the populist right who feels like the current system is kicking them in the teeth (which it is).

So if not now, then never.

My money is on never.

“We are not going to be joining with Jim Chalmers on trying to ping Australians for more money because he can’t stop his spending spree.” – Ted O’Brien.

Why do opposition politicians always frame it like this? What is spending so frowned upon? Governments should spend. Governments should spend on services and infrastructure. That’s why we pay tax.

Erosion of the tax base has the same impact as spending too much, and it’s even worse because it justifies spending even less on those essential services in the future.

Howard should never have introduced the discount in the first place. It doesn’t make any sense to arbitrarily discount a profit merely because it’s on capital account as opposed to revenue.

And I continue to be confused about whether or not the average person even understands that the CGT discount is for ALL asset classes, not just real estate. We already have CGT above most first world countries WITH the discount! How the hell are you supposed to build any kind of wealth if you need to pay high income tax, invest what’s left over, and then pay super high tax again when you actually want to use the proceeds of your investments (in stocks, bitcoin, gold, etc)? If they want to carve out an except for multiple investment properties, or capital gains over certain super high thresholds, ok, but can we NOT fuck over the average investor in the process?

There needs to be a total tax reform looking at everything with no exceptions. Problem is no political party will do it because its a great idea but a vote loser.

Makes sense if they just do this for property – which apparently they intend to

While we’re at it, owner occupier shouldn’t be at 0%

No way they will axe or modify something they directly benefit from.

but….but….this is not what they promised during last election under Albanese.