Nearly 50% of the capital gains tax discount went to just 24,000 people who earned over $1 million in 2022–23, according to Oxfam Australia report released in October. Oxfam is calling on the Australian government to end unfair tax discounts that overwhelmingly benefit the wealthiest Australians.
On average, each of these high-income individuals gained $271,000 from the capital gains tax discount on profits from the sale of assets and investments — almost 1,500 times the benefit received by an average worker. Scrapping the capital gains discount could restore around $22.7 billion to the federal budget each year.
Oxfam Australia Chief Executive, Jennifer Tierney, says these findings show that Australia’s tax system is deepening the inequality crisis by providing significant tax breaks to the wealthiest while working Australians continue to pay their fair share.
“Handing out billions through the capital gains tax discount is simply indefensible at a time when so many Australians are struggling. This tax break overwhelmingly benefits a tiny group of already wealthy individuals, while ordinary workers pay tax on every dollar they earn. Ending the discount is one of the simplest and fairest ways to restore integrity and balance to our tax system,” said Ms Tierney.
Polling commissioned by Oxfam Australia and conducted by YouGov shows strong public concern and support for action:
- 73% of Australians are concerned about the widening gap between ordinary people and the super-rich.
- 68% support investing additional tax revenue in poverty-reducing measures such as housing and income support.
Oxfam Australia’s report, The Elephant in the Room: Australia’s failure to tax wealth, highlights the urgent need to address unfair tax concessions. Ending the capital gains tax discount for individuals and trusts would be a significant first step toward a fairer tax system and ensuring sufficient revenue for essential public services.
For interviews, contact Lucy Brown on lucyb@oxfam.org.au / 0478 190 099
