Brisbane’s inner electorates benefit the most from the capital gains tax discount (CGT), with people in regional and outer areas receiving far less, new ACOSS analysis shows.
The electorate of Brisbane, where the average taxable income is $99,285, receives $527.6 million annually in CGT discount expenditure, averaging $3,873 per person - over 2.5 times the national average of $1,470.
Meanwhile, someone in Herbert in the state’s north, where the average taxable income is $69,881, receives an average CGT concession of just $409. This is over 12 times less than Brisbane.
ACOSS’s analysis of all 150 federal electorates also shows the stark inequality across the country, with the CGT discount benefit flowing overwhelmingly to capital cities and mostly to eastern states. Brisbane’s average CGT discount per person is $1,478, while the rest of the state averages just $1,075 per person.
"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.
Top electorates in Queensland by CGT discount benefit in 2022-23:
-
Brisbane: $527.6m total benefit / $3,873 per person
-
Ryan: $295.0m total benefit / $2,707 per person
-
Griffith: $278.9m total benefit / $2,202 per person
-
Moncrieff: $275.0m total benefit / $2,184 per person
Lowest-receiving electorates in 2022-23:
-
Kennedy: $50.4m total benefit / $503 per person
-
Oxley: $46.4m total benefit / $400 per person
-
Herbert: $41.6m total benefit / $409 per person
ACOSS is calling on the Federal Government to:
-
Halve the 50% CGT discount progressively over 5 years
-
End negative gearing immediately for new investments, and phase it out over 5 years for existing investments
-
Invest the savings in essential supports and services, including social housing and income support
Contact details:
Charlie Moore: 0452 606 171