People in South Australia receive the third-lowest benefit from the capital gains tax (CGT) discount in the nation, while wealthy electorates in Sydney and Melbourne benefit the most, new ACOSS analysis shows.
South Australia receives just 4% of national expenditure on the CGT concession, worth around $992m per year, an average of just $907 per person, with only Tasmania and the Northern Territory benefitting less. It receives less than half the average per person benefit received by New South Wales.
The electorate of Sturt benefits the most in South Australia but is still ranked only 31st nationally, receiving $193 million per year at an average benefit of $1,565 per person.
Spence is the lowest ranked electorate in the entire country, with each person benefitting by only $302 on average each year.
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 per person of $13,450 per year.
"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 South Australia by CGT discount benefit in 2022-23:
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Sturt: $193.3m total benefit / $1,565 per person
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Adelaide: $165.9m total benefit / $1,268 per person
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Mayo: $135.0m total benefit / $1,247 per person
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Boothby: $133.0m total benefit / $1,170 per person
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Hindmarsh: $94.4m total benefit / $861 per person
Lowest-receiving electorates in 2022-23:
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Kingston: $41.3m total benefit / $416 per person
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Makin: $42.8m total benefit / $404 per person
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Spence: $33.7m total benefit / $320 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