The Greens-led Senate Inquiry into the Capital Gains Tax discount has delivered findings critical of the CGT discount which should prompt reform, the Greens say.
The Senate Select Inquiry into the Operation of the Capital Gains Tax Discount has handed down a majority report, supported by Labor Senators, which found the tax break is skewing home ownership towards investors, disproportionately benefiting wealthier Australians, and distorting productive investment.
In additional comments, the Greens called for the CGT discount to be abolished for investment properties and substantially reined in across all asset classes, along with broader tax reform.
"This 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," Greens Economic Justice spokesperson and Committee Chair Senator Nick McKim said.
"The Report makes a case that is impossible for Labor to ignore - time is up on the Capital Gains Tax discount and it needs to be reined in."
"Labor has now been handed a historic opportunity to pass genuinely ambitious and progressive tax reform in this parliament."
"The only limits are Labor's level of ambition and courage."
"The Greens have high expectations of the Government. Tinkering around the edges is not going to cut it."
"The Senate inquiry has confirmed what Australians have known for a long time - the CGT discount is an unfair tax break that favours property speculators over first home buyers, older Australians over younger, and investors over workers."
"It's now clear that there is growing recognition in Parliament that this tax break is turbocharging the housing crisis, wealth inequality and intergenerational inequity."
"If the Government is serious about reducing inequality and fixing the housing crisis, now is the time."
The full report can be found here.
