Overview
- Treasurer Jim Chalmers said the May 12 budget will feature tax measures, savings and a productivity package, and he declined to rule out changes to the capital gains concession.
- Parliamentary Budget Office analysis projects the 50% discount will cost $247 billion over 10 years, with about 82% of benefits going to the top 10% of earners and nearly 60% to the top 1%.
- The Greens signalled willingness to negotiate on the scale, scope and design of reforms, as their Senate inquiry into the discount prepares to report, while the Coalition declared firm opposition.
- Economic modelling cited by Grattan Institute and Deloitte suggests trimming the discount would likely have only a small effect on house prices, with larger impacts requiring changes to negative gearing or broader design shifts.
- Design choices under discussion include grandfathering existing assets, limiting changes to property or exempting new builds, as Labor balances revenue, intergenerational equity and housing supply goals.