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General News, Government Federal
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15/01/2026
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08:00
e61 Institute
Replace capital gains discount with income averaging
The capital gains tax discount should be replaced with a fairer approach. A potential direction for reform would be to instead allow individuals to spread gains over time rather than taxing them in a single year, according to the e61 Institute. In a submission to the Senate Select Committee on the Operation of the Capital Gains Tax Discount, e61 said the discount is inequitable and distorts the way Australians work, save, invest, and finance their investments. “The current treatment of capital gains income incentivises individuals to invest in capital gains-generating assets, borrow too much, and reclassify earnings as capital gains,”…