This paper examines the economic case for the capital gains tax (CGT) discount and concludes that many of the arguments for reducing it are based on persistent myths rather than evidence. The paper argues that housing should not dominate the CGT debate. It finds that some form of concessional treatment for capital gains is economically...

This paper proposes a targeted income tax cut for low-income workers by increasing the Low Income Tax Offset (LITO). The LITO is an automatic tax refund that low-income earners receive when they lodge their tax return. The paper reveals key beneficiaries would be young people and those in regional areas, with National Party electorates benefiting...

There are various proposals regarding how to reform capital gains taxation in Australia. Using data on realised capital gains in 2022 for a subset of housing investors (those holding for between one and nine years) this paper describes how four different tax systems, including the current system, would have treated individuals differently.

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.