Oxfam Australia Media Release
Nearly 50% of the capital gains tax discount went to just 24,000 people who earned over $1 million in 2022–23, according to Oxfam Australia report released in October. Oxfam is calling on the Australian government to end unfair tax discounts that overwhelmingly benefit the wealthiest Australians.
On average, each of these high-income individuals gained $271,000 from the capital gains tax discount on profits from the sale of assets and investments – almost 1,500 times the benefit received by an average worker. Scrapping the capital gains discount could restore around $22.7 billion to the federal budget each year.
Oxfam Australia Chief Executive, Jennifer Tierney, says these findings show that Australia’s tax system is deepening the inequality crisis by providing significant tax breaks to the wealthiest while working Australians continue to pay their fair share.
“Handing out billions through the capital gains tax discount is simply indefensible at a time when so many Australians are struggling. This tax break overwhelmingly benefits a tiny group of already wealthy individuals, while ordinary workers pay tax on every dollar they earn. Ending the discount is one of the simplest and fairest ways to restore integrity and balance to our tax system,” said Ms Tierney.
Polling commissioned by Oxfam Australia and conducted by YouGov shows strong public concern and support for action:
- 73% of Australians are concerned about the widening gap between ordinary people and the super-rich.
- 68% support investing additional tax revenue in poverty-reducing measures such as housing and income support.
Oxfam Australia’s report, The Elephant in the Room: Australia’s failure to tax wealth, highlights the urgent need to address unfair tax concessions. Ending the capital gains tax discount for individuals and trusts would be a significant first step toward a fairer tax system and ensuring sufficient revenue for essential public services.
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It really is time to fix the tax system. Suggestions have been made that the GST needs to be increased, but that will only exacerbate the the inequalities inherent in the way tax revenue is collected.
Should that become a policy to take to the next election?
Oh dear what happened when Scott Morrison won the unwindable election, perhaps it is time to bite the bullet, and do some radical fixing of the tax system to redress the inequalities which are so very evident.
Do it NOW while the numbers pretty much guarantee the bills will pass through the parliament, and any opposition to the bills will show who gives a shit about the least of our people.
Good luck with that idea Bert. The really big tax rorters, not cough, Gina, cough, Twiggy, cough, Adani, etc. mentioning any names will just keep slipping brown envel…donations and promises of really good lobbying jobs to the major political parties who will fall over themselves to keep these great corporate mates onside.
This has been well documented and published for well over two decades!
The simple fact of the matter is lack of political will along with anti social behaviour all round….
https://michaelwest.com.au/soaring-real-estate-housing-crisis-family-home-rort/?
https://michaelwest.com.au/the-reserve-bank-fibs-and-has-no-idea-about-wages-causing-inflation/?
https://michaelwest.com.au/high-end-secrecy-and-money-laundering-is-dragging-the-property-market-higher/
https://michaelwest.com.au/who-benefits-from-negative-gearing-cgt-pbo/?
https://michaelwest.com.au/mortgage-nation-the-wealth-effect-that-drives-big-banks-super-profits/
https://michaelwest.com.au/not-ready-investors-chop-down-deforestation-action/
https://johnmenadue.com/post/2024/02/podcast-time-for-radical-tax-reform-on-climate-change-housing-affordability/
Remember this? Nothings changed, it got worse.
https://www.youtube.com/watch?v=T2IaJwkqgPk
Agreed. Time to fix the residential housing crisis dilemma established by the Howard COALition misgovernment and carried forward by his unthinking/uncaring self-serving successors.
This excellent report overlooks a likely consequence of grandfathering in these changes ….. the present recipients would keep their present tax advantages for a proscribed period, but demand by residential housing investors would reduce, especially over time as the one house limit was reached.
Why is the SLOW ALBO LABOR government pandering to the financial wishes of about 24,000 millionaires ….. most of whom likely vote for the COALition disarray?? What about the workers??
@ heather: Thank you for the bibliography.