The Australian Capital Territory receives lower than the national average in capital gains tax (CGT) discount benefit, with new ACOSS analysis exposing the inequality of the tax break.
People in the ACT receive an average $1,113 in CGT concession each year, which is 24% below the national average of $1,470.
The electorate of Canberra is the ACT's highest ranked seat, receiving $202.8 million in CGT discount expenditure each year, at an average of $2,024 per person - nearly double the ACT's average. Bean and Fenner receive considerably less, at $779 and $584 per person respectively.
Nationally, the top five electorates - all in Sydney and Melbourne - capture 22% of all CGT discount expenditure nationally, while the bottom 10 electorates receive just 1.6%.
"It’s clear this tax break funnels billions into the wealthiest parts of our cities and country at the expense of those doing it tough,” said ACOSS CEO Dr Cassandra Goldie.
"This is money that could be invested in social housing, essential services, income support and the communities that need support the most. Instead, it’s being used to supercharge inequality. That is not a fair or sensible use of public funds."
“When a policy so clearly supercharges inequality while driving up home prices, it simply must be in the national interest for urgent reform.”
Read the ACOSS briefing note: The unfair distribution of the CGT discount by electorate. View the interactive map here.
Electorates in the ACT ranked by CGT discount benefit in 2022-23:
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Canberra: $202.8m total benefit / $2,024 per person
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Bean: $81.1m total benefit / $779 per person
ACOSS is calling on the Federal Government to:
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Halve the 50% CGT discount progressively over 5 years
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End negative gearing immediately for new investments, and phase it out over 5 years for existing investments
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Invest the savings in essential supports and services, including social housing and income support
Contact details:
Lauren 0422 581 506