Tinkering with the capital gains tax discount isn’t enough. Here’s why it needs to go

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It looks increasingly likely Treasurer Jim Chalmers will make changes to the capital gains tax (CGT) discount in the federal budget in May.

Under the current system, a person who has held an asset for at least 12 months receives a 50% reduction in the capital gains tax bill they would otherwise pay when they sell the asset, such as shares, real estate or crypto.