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Australia’s CGT discount heavily favors wealthy voters, sparking calls for reform ahead of the May budget.
Australia’s 50% capital gains tax (CGT) discount disproportionately benefits wealthy electorates, with the top 10—mostly in Sydney, Melbourne, and Brisbane—receiving a third of benefits while the poorest 10 get less than 2%.
High earners, particularly those over $142,000, capture most savings, totaling $5.9 billion in CGT benefits and $3 billion in negative gearing perks.
The federal government is reviewing reforms ahead of the May budget, with MP Allegra Spender proposing a 30% CGT discount and income tax cuts using $29 billion in savings.
ACOSS and the Greens urge phasing out the discount and ending negative gearing to fund social housing and welfare.
A Senate inquiry is set to report soon as pressure mounts to address housing affordability and fiscal fairness.
El descuento del CGT en Australia favorece fuertemente a los votantes ricos, provocando llamados a la reforma antes del presupuesto de mayo.