Australia Capital Gains Tax Perk Fuels Inequality, Report Says

Australia’s capital gains tax discount could be distorting investment decisions and contributing to wealth inequality, a senate inquiry said Tuesday.

The inquiry into the 50% tax discount on capital gains began last year. It comes amid a larger rethinking of tax breaks amid concerns about housing affordability and economic fairness.

In its treatment of income from buying and selling assets, Australia’s tax system “is far more generous than its treatment of income generated by working,” the committee chair, Greens Sen. Nick McKim wrote. The capital gains tax discount “plays a significant role in this fundamentally ...