NSW government calls for rethink on capital gains tax discount to ease housing affordability

The Guardian - World NewsCenter-LeftEN 1 min read 100% complete by Tom McIlroy Political editorJanuary 13, 2026 at 03:00 PM

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The NSW government has called for a re-evaluation of the capital gains tax (CGT) discount to address housing affordability issues. In a submission to a federal parliamentary inquiry, NSW Treasury argued that the 50% CGT discount, along with negative gearing, incentivizes property investment, particularly benefiting wealthy investors. This, according to the submission, undermines policies designed to assist first-time homebuyers and contributes to inflated property prices. The NSW government suggests that these tax concessions distort the housing market and require reconsideration to improve affordability across the state. The inquiry is examining the impact of tax concessions on housing affordability nationwide.

Key Entities & Roles

Key Player Opposition Context

Australia 70% NSW Treasury 70% NSW Government ×290%

Keywords

capital gains tax 100% housing affordability 90% tax concessions 70% property prices 70% property investment 60% first home buyer assistance 60% negative gearing 50% investors 40%