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NSW Government: CGT Discount Fuels Housing Crisis

1/14/2026

Summary

Story summary

The New South Wales (NSW) government claims the 50% capital gains tax (CGT) discount negatively impacts housing affordability, favoring wealthy investors over first-time buyers.
A federal inquiry, led by Greens spokesperson Nick McKim, is investigating this issue, with NSW Treasury estimating the CGT discount costs the federal budget approximately $23 billion.
Lending to investors has increased to $139 billion, while first home buyer lending is only $64 billion.
Federal Treasurer Jim Chalmers has dismissed potential changes to CGT rules despite the inquiry's pressure.
The Property Council warns that modifying the CGT discount could exacerbate housing shortages and raise rents, with public hearings concluding by March 17.

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Story summary

The New South Wales (NSW) government claims the 50% capital gains tax (CGT) discount negatively impacts housing affordability, favoring wealthy investors over first-time buyers.
A federal inquiry, led by Greens spokesperson Nick McKim, is investigating this issue, with NSW Treasury estimating the CGT discount costs the federal budget approximately $23 billion.
Lending to investors has increased to $139 billion, while first home buyer lending is only $64 billion.
Federal Treasurer Jim Chalmers has dismissed potential changes to CGT rules despite the inquiry's pressure.
The Property Council warns that modifying the CGT discount could exacerbate housing shortages and raise rents, with public hearings concluding by March 17.