People in Tasmania receive the second-lowest benefit from the capital gains discount in the nation, while wealthy electorates in Sydney and Melbourne benefit the most, new ACOSS analysis shows.
Tasmania receives just 1% of national expenditure on the CGT concession, worth around $235 million each year,, an average of just $709 per person, with only the Northern Territory benefitting less.
The electorate of Clark benefits the most in Tasmania but is still ranked only 71st nationally, receiving $66.3 million per year at an average benefit of $940 per person - far less than the national average benefit of $1,490.
Braddon is the lowest ranked electorate in the state, receiving $31 million, an average of $509 per person.
Nationally, the top five electorates - all in Sydney and Melbourne - capture 22% of all CGT discount expenditure, while the bottom 10 electorates receive just 1.6%. Wentworth in Sydney’s east receives the highest CGT discount benefit of around $1.76 billion, an average of $13,450 per year.
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. Hobart’s average CGT discount per person is $894, while the rest of the state averages $614.
"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 Tasmania ranked by CGT discount benefit in 2022-23:
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Clark: $66.3m total benefit / $940 per person
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Franklin: $50.8m total benefit / $739 per person
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Lyons: $46.1m total benefit / $700 per person
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Bass: $40.2m total benefit / $626 per person
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Braddon: $31.9m total benefit / $509 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