The briefing paper provides an analysis of all 150 federal electorates in Australia, using statistics from 2022–23, to show the flow of the 50% Capital Gains Tax (CGT) discount. It finds that the benefits of the CGT discount flow overwhelmingly to a small number of high-income, inner-city electorates in the eastern states.

To improve equity, raise revenue, and improve housing affordability, the paper recommends the Federal Government halves the 50% CGT discount over five years, ends negative gearing immediately for new investments and over five years for existing investments, and invests the savings in essential supports and services like social housing and income support.

Key findings

• Ten of the highest income electorates in Australia receive a third of national expenditure on the CGT discount (CGTD), which costs the country around $23.5 billion per year. 
• The top five electorates ranked by average taxpayer benefit – all in Sydney and Melbourne – receive 22% of all CGT discount expenditure nationally.
• The CGT discount benefit flows overwhelmingly to capital cities and mostly to eastern states.
• New South Wales receives more than four times the average CGT discount per taxpayer than the Northern Territory, and more than twice that of Tasmania and South Australia.
• There is a 40-fold difference in the CGT discount benefit between Wentworth, the country’s wealthiest electorate, and one of its most financially stretched (Blaxland in Western Sydney).

The report is provided with an interactive map.