Capital gains tax changes are already having an impact on wealth inequality – and vested interests are running scared

Automatically composed with AI from the cited sources

House prices nationally have fallen by $100,000, or 10%, over the year to November, with declines of 7–8% in Sydney and Melbourne, which Greg Jericho attributes to the proposed changes to the capital gains tax discount. New Australian Taxation Office data for 2023–24 shows 1.6 million people reported capital gains, of whom 369,000 were under 35 and nearly 400,000 were over 65; the top 0.2% of income earners (above $1m) captured 38% of net capital gains. Jericho presented these findings to the Senate committee examining the tax changes, contrasting them with opposition claims that the CGT discount did not drive house prices and that young people are the main beneficiaries.