Overview
- Independent MP Allegra Spender’s white paper proposes lowering the bottom personal rate to 13% and cutting every other marginal rate by 2.5 percentage points while keeping the $18,200 tax‑free threshold.
- To fund the cuts, the plan would reduce the capital gains tax discount to 30%, ring‑fence negative gearing, impose a 27.5% minimum tax on investment income including trusts, and increase taxes on large super balances.
- Spender says the package is revenue‑neutral and would deliver roughly $28–30 billion a year in tax relief for workers, including about $1,643 in 2027–28 for someone earning $100,000.
- ACOSS analysis shows benefits from the 50% CGT discount flow heavily to wealthy areas, with Wentworth residents receiving an estimated $1.8 billion in one year and a handful of electorates capturing a large share.
- The PBO estimates CGT and negative gearing will forgo $15.4 billion in revenue this year and nearly $190–205 billion over a decade, as the Greens push for cuts to concessions and a Senate inquiry report is due next week, while economists debate revenue timing and investment effects.