Lower capital gains taxes doesn’t mean more business investment

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By Leith van Onselen

When former Treasurer Peter Costello halved the rate of capital gains tax (CGT) in 1999, it was done on the assumption that a lower rate of CGT would help boost business investment.

The result was anything but, with money instead flowing into established investment properties, at a cost of billions to the federal Budget:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.