This Impact Analysis Equivalent considers reforms to negative gearing and capital gains tax arrangements. It sets out the problem being addressed, the proposal, the assessment outcome and the regulatory burden. The Department of the Treasury estimates the changes would increase average regulatory costs by $88.4 million per year.

Capital gains tax (CGT) and negative gearing were two of the top three priorities for tax reform in Australia identified by participants at a community tax summit. This paper argues for a reduction to the CGT discount from 50% to 25% and limiting negative gearing deductions to investment income only.

A report from the inquiry into the operation of the capital gains tax discount in Australia including its contribution to inequality, how it influences the types of assets purchased, its distributional effects and its role in suppressing productivity and whether it is fulfilling its original intended purpose. The report finds Australia’s tax system is broken.

This briefing note outlines how tax breaks for property investors in Australia are contributing to worsening housing affordability. It proposes the Federal Government recalibrate its housing policies to prioritise people on low incomes. It should curb the 50% CGT discount and negative gearing and invest the savings in essential supports such as social housing.

Australia’s social housing stock is at record lows, coinciding with worsening social housing need and persistent homelessness. This briefing note recommends the Federal Government recalibrate its housing policies to prioritise people on the lowest incomes. It recommends to set and fund social housing targets, curb the Capital Gains Tax discount and negative gearing.