‘Captured by the richest’: push for housing tax shift

Australia’s top union body says cuts to capital gains tax have done little to address why the measure was introduced, as the federal government weighs whether to replace the controversial measure.

The inquiry into capital gains tax will begin hearings on Monday, with union officials and leading economists giving evidence.

The cut in capital gains tax, introduced by the Howard government in 1999, allows for a 50 per cent reduction in tax on investment properties sold after having been owned for a year.

In its submission to the inquiry, the Australian Council of Trade Unions called for the discount to be reduced to just 25 per cent to make it fairer.

In a statement 26 years later, the union said the reduction was introduced to make capital gains tax more competitive internationally and to ensure more efficient management of assets, but that little of this aim had been met.

“CGT relief has been an important mechanism allowing the very wealthy to pay lower effective tax rates,” the ACTU said in its submission. The statement was included.

“The latest Treasury data to December 2025 shows most of the benefits of the rebate were captured by the richest one per cent of Australians.”

Those testifying on the first day of hearings will include union president Michele O’Neil, as well as union figure Bill Kelty and economist Alan Kohler.

The ACTU said reducing the rebate would not be a complete solution to housing problems, but would go a long way to solving the problems.

While the federal government has been tipped to make changes to the reduction in the May budget, Prime Minister Anthony Albanese has not confirmed whether the move is likely.

“We’re making tax cuts this July, we’re making another tax cut next July and we’re doing everything we can to solve the supply problem when it comes to housing,” he told Sky News.