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According to media reports, the upcoming federal budget will change the capital gains tax (CGT) from its current 50% discount on nominal gains to the pre-1999 method of taxing 100% of real, inflation-adjusted gains.
The new CGT regime would apply to all assets, not just property.
Returning to the pre-1999 method of calculating CGT offers several benefits for tax efficiency, fairness, and budget sustainability.
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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.