Oxfam Australia is calling for urgent reform of Australia's tax system, as the Senate Economics Legislation Committee holds hearings for the Inquiry into the Treasury Laws Amendment (Tax Reform) Bill this week.
The existing capital gains tax (CGT) discount and negative gearing disproportionately benefit high-income earners and households with significant wealth. Oxfam analysis shows that people earning over $1 million receive an average capital gains tax discount worth $271,610.
These tax concessions have encouraged speculative investment in existing housing, costing the Budget billions of dollars annually in foregone revenue. This has contributed to rising house prices, deepened the housing crisis, and pushed safe, decent and affordable housing out of reach for many Australians.
The current settings have also exacerbated inequality, enabling the concentration of extreme wealth among a small number of households while limiting government capacity to invest in measures that reduce poverty in Australia and across the region.
The proposed reforms to negative gearing and the CGT discount represent an important step toward a fairer tax system. Reforming these concessions would reduce incentives for speculative investment in housing, ease pressure on the housing market, and improve access to affordable housing.
Oxfam Australia Chief Executive, Jennifer Tierney, said the reforms are long overdue and would help address inequality in Australia.
"Negative gearing and the capital gains tax discount are key drivers of inequality in Australia and are making it harder for people to access safe and affordable homes. After two decades of rapidly rising house prices, declining home ownership rates and widening inequality since the introduction of the CGT discount, reform is long overdue.
"At present, the tax system is tilted towards wealth accumulation for those who already have it. These reforms are about creating a fairer system that prioritises housing security and opportunity, rather than tax advantages for the already wealthy.
Oxfam Australia urges Senators and Members of Parliament to support the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and ensure these reforms are passed without delay.
