Top 10pc gain 80pc of CGT benefits

Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 22-Jan-18

The percentage of the yearly benefits of the capital gains tax discount that goes to the highest income earners has increased from 70 per cent to 80 per cent over the last 10 years or so, according to the Australian Taxation Office. Danielle Wood from the Grattan Institute says this suggests that the 50 per cent discount on capital gains needs to be modified. The presence of the discount, when combined with negative gearing, is seen by experts as making the leverage of real estate a particularly attractive proposition for investors.

CORPORATES
AUSTRALIAN TAXATION OFFICE, GRATTAN INSTITUTE, AUSTRALIAN LABOR PARTY, AUSTRALIAN HOUSING AND URBAN RESEARCH INSTITUTE

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