With debate re-emerging about changes to the capital gains tax discount, a new paper from Anglicare Australia shows Australia’s housing and inequality crisis is being made worse by the tax system.
The paper finds that the capital gains tax discount has helped turn housing into an investment game — benefiting people who already own property while locking others out of secure, affordable homes.
“Right now, we’re spending billions of dollars subsidising property investors, while people who need a place to live are being left behind,” said Kasy Chambers, Executive Director of Anglicare Australia.
“These tax settings aren’t abstract. They shape who gets a home and who doesn’t.”
Anglicare Australia says the return of public debate about the capital gains tax discount creates an opportunity to change course.
“We are encouraged to hear that the government is looking at tax changes in the next Budget.
“For too long, governments have spent big on tax breaks for investors, instead of building public and community homes people can actually afford,” Ms Chambers said.
“The result is higher rents, higher house prices, and growing inequality.”
The paper calls for reform of the capital gains tax discount, alongside changes to other housing tax settings, with revenue redirected into public and community housing.
“Housing should be treated as essential infrastructure, not a tax-advantaged asset,” Ms Chambers said. “If we’re serious about fixing the housing crisis, this is where reform has to start.”