![\"Each](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/e7b042a061ea1fcf1409e459af174f99.jpeg\")
Each year about $20bn in capital gains tax discounts is foregone by the federal government. Picture: NewsWire \/ Nicholas Eagar <\/p>\n Each year about $20bn in capital gains tax discounts is foregone by the federal government. Picture: NewsWire \/ Nicholas Eagar <\/p>\n
Nearly half of the capital gains tax discounts line the pockets of just 24,000 multi-millionaire Australians, Oxfam Australia analysis finds.<\/p>\n
This wealthy cohort enjoy an average tax discount of $271,000, the analysis shows, which comes as a senate inquiry finds the tax discount has skewed housing ownership away from owner-occupiers to investors.<\/p>\n
\u201cAt a time when so many Australians are struggling with the cost of living and housing affordability, it\u2019s reasonable to ask whether billions in tax concessions should continue flowing to a small group of high-income investors,\u201d Oxfam Australia chief executive Jennifer Tierney said.<\/p>\n
\u201cThe capital gains tax discount delivers its biggest benefits to people who are already very wealthy.\u201d<\/p>\n
The tax discount means people and family trusts that sell investment properties only pay tax on half the profit. It represents $22bn in foregone tax revenue each year.<\/p>\n
Treasurer Jim Chalmers looks set to take the option of reforming capital gains tax discounts to his cabinet colleagues ahead of the May budget. Picture: NewsWire \/ Martin Ollman <\/p>\n
Parliamentary Budget Office analysis finds that the top 10 per cent of income earners will accrue about 82 per cent of the capital gains tax discount savings this financial year.<\/p>\n
Ahead of the federal government budget in May, speculation is mounting that capital gains tax discounts will be reduced, as Treasurer Jim Chalmers repeatedly says \u201ca number of tax reform options\u201d will be presented to his cabinet colleagues for a final decision.<\/p>\n
Released on Tuesday, a senate report on the operation of the capital gains tax discount found the tax break and negative gearing had skewed Australian housing away from owner-occupiers toward investors.<\/p>\n
\u201cThis is the first time since 2019 that Labor has acknowledged the fundamental unfairness of the CGT discount, including its contribution to the housing crisis, wealth inequality and intergenerational equity,\u201d Greens senator and committee chair Nick McKim said.<\/p>\n
Liberal Party committee members Andrew Bragg and Dave Sharma issued a dissenting view, saying the report was \u201ca simplistic and one-dimensional analysis of Australian housing policy\u201d that did not address the supply issue.<\/p>\n
Oxfam Australia chief executive Jennifer Tierney asks whether billions of dollars in tax concessions should keep flowing to a small group of high-income investors. Picture: Supplied <\/p>\n
Oxfam says the report reflects longstanding concerns that the tax system unequally benefits the wealthy and older generations.<\/p>\n
Oxfam analysis shows just 24,000 people earning more than $1m a year account for nearly half of the financial benefits of the capital gains discount benefit.<\/p>\n
\u201cOn average, each received a tax break worth around $271,000 \u2013 vastly more than the benefit available to ordinary workers,\u201d Ms Tierney said.<\/p>\n
\u201cReforming unfair tax breaks like the CGT discount would help restore balance to the tax system and could free up billions of dollars each year to invest in things Australians care about; from housing and essential services to measures that reduce poverty and inequality.<\/p>\n
As the May 12 federal budget draws closer, Mr Chalmers and Finance Minister Katy Gallagher have begun using clearer language when asked if capital gains reform is on the table.<\/p>\n
\u201cWe are interested in responding to some of the intergenerational issues around housing. Capital gains tax comes up as one of those issues,\u201d Ms Gallagher said on Tuesday.<\/p>\n
On Wednesday, Mr Chalmers said the chance for reform would be on the table.<\/p>\n
\u201cWe have made it clear that we are considering our options on tax,\u201d he told ABC radio.<\/p>\n
\u201cWe have indicated publicly for some time now, really since the reform roundtable last year, that we have an open mind to tax reform if we can afford it \u2026 I\u2019ve tried to be upfront in saying that we are working up some options.<\/p>\n
\u201cI\u2019m not going to come out with what those options look like, but there\u2019s certainly some and there\u2019s certainly appetite for more tax reform if we can land it.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Each year about $20bn in capital gains tax discounts is foregone by the federal government. Picture: NewsWire \/…\n","protected":false},"author":2,"featured_media":547936,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,79553,44703,164,39045,271116,42086,271117,271115,35747],"class_list":["post-547935","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-capital-gains","tag-capital-gains-tax","tag-economy","tag-housing-affordability","tag-jennifer-tierney","tag-jim-chalmers","tag-oxfam-australia","tag-tax-concessions","tag-tax-reform"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/547935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=547935"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/547935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/547936"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=547935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=547935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=547935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}