Scaling back the capital gains tax discount might not help housing affordability – but there are still good reasons to do it

There is a raw and deepening anger about housing affordability in Australia. But economists don’t think slashing the capital gains tax discount will make a big difference to house prices. Photograph: Jessica Hromas/The Guardian

Slashing tax breaks for property investors might not put much of a dent in house prices, but that’s not to say it can’t make a meaningful difference to home ownership rates over the coming years.

Reading through the submissions to the Greens-led Senate committee on the capital gains tax discount and talking to economists delivers a series of convincing arguments for why the government might be on a winner if it finally finds the courage to prosecute this reform.