Story perspectives

Chalmers swaps 50% CGT discount for 30% indexed rate

5/18/2026

Summary

Story summary

Treasurer Jim Chalmers announced the 50 percent capital gains tax discount will be replaced by an inflation-indexed 30 percent rate.
Business leaders warned the change could deter investment, destroy jobs, and push start-ups into a 47 percent tax.
The budget added R&D incentives, instant asset write-offs, venture-capital tax treatment and a loss carry-back scheme.
Opposition leaders warned indexing tax rates could add a quarter-trillion dollars to debt and raise the private-sector tax burden.

History

Historical Context

Australia introduced capital gains tax in 1985, then the Howard government ended indexation and launched a 50 % discount on gains for assets held over a year on 21 September 1999, forgoing about AUD 10 billion each year. Today Treasurer Jim Chalmers proposes swapping that discount for an inflation-indexed 30 % rate, a change the Australian Labor Party and the Australian Securities Exchange warn could curb capital formation.

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Story summary

Treasurer Jim Chalmers announced the 50 percent capital gains tax discount will be replaced by an inflation-indexed 30 percent rate.
Business leaders warned the change could deter investment, destroy jobs, and push start-ups into a 47 percent tax.
The budget added R&D incentives, instant asset write-offs, venture-capital tax treatment and a loss carry-back scheme.
Opposition leaders warned indexing tax rates could add a quarter-trillion dollars to debt and raise the private-sector tax burden.

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