A Senate inquiry has provided Treasurer Jim Chalmers with ammunition for his plan to pare back the capital gains tax discount in the May 12 budget.
The majority report of the inquiry into the operation of the capital gains tax discount, tabled Tuesday, concluded that while various factors influenced housing markets, there was evidence the discount, combined with negative gearing, had “skewed the ownership of housing away from owner-occupiers and towards investors”.
The committee, chaired by Greens senator Nick McKim, included two Labor senators, two Liberals – one of them the Coalition housing spokesman, Andrew Bragg – and independent senator David Pocock. The majority report was supported by McKim, Labor and Pocock, with the Liberals producing a dissenting report.
