This move shows a direct causal link between CGT policy and housing affordability, overturning long-held conservative claims that CGT discounts did not impact housing prices. It highlights how tax policy can be a lever to address intergenerational wealth inequality by reducing incentives for speculative property investment.
Frame 1 of 4
Capital gains tax changes are already having an impact on wealth inequality – and vested interests are running scared
Australia's CGT discount removal has already led to a significant drop in housing prices, disproving conservative claims that the discount did not affect affordability. Data shows capital gains income is concentrated among older, wealthier cohorts, indicating the policy targets intergenerational wealth inequality. The CGT 50% discount introduced in 1999 has been identified as a key driver of housing price increases over 27 years. Recent changes to the CGT discount have already caused a 7-10% fall in house prices nationally and in major cities.