In November 2025, the Parliament of Australia established the Select Committee on the Operation of the Capital Gains Tax (CGT) Discount to examine how the CGT discount operates and its impacts on the Australian economy and housing system. The Committee’s final report is due in March 2026.
ACT Shelter’s submission argues that the current CGT discount — particularly when combined with negative gearing — is a major driver of housing inequality and declining affordability. The submission sets out how existing tax settings disproportionately benefit higher-income households, encourage speculative investment in existing housing rather than new supply, increase household debt, and divert public revenue away from critical investments such as social and affordable housing.
ACT Shelter calls for a staged reduction in the CGT discount and reforms to negative gearing. Critically, the submission argues that revenue recovered through these reforms should be reinvested in social and affordable housing, helping to rebalance Australia’s housing system and ensure that tax policy supports fairness, productivity and long-term housing security.