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Budget Tweaks: Top 1% Benefit Most from Tax Breaks

Budget Tweaks: Top 1% Benefit Most from Tax Breaks

Published 2 weeks, 6 days ago
Description

Australias capital gains tax discount and negative gearing rules primarily benefit the top one percent, according to recent budget data. Over half of the capital gains tax benefits go to this elite group, while the top ten percent receive eighty-three percent of those concessions and thirty-seven percent from negative gearing. The federal budget is proposing changes to these policies and cuts to discretionary trust perks to curb housing speculation. The top one percent of earners receive more than seven hundred thousand dollars in total tax breaks from capital gains, negative gearing, and trusts over a lifetime. These breaks disproportionately affect lower earners trying to buy a home, exacerbating inequality as most benefits bypass them.

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