Treasurer Jim Chalmers has confirmed the government is considering changes to capital gains tax concessions as part of a broader tax reform agenda, but has not announced a specific policy to lower the discount. In recent statements, Chalmers has framed the discussion around improving the fairness and sustainability of the tax system, particularly regarding housing affordability.
The current capital gains tax discount in Australia stands at 50% for assets held longer than 12 months. While the Labor government has been under pressure to address tax concessions, especially from the Greens and crossbench, no legislation has been introduced to parliament to alter this rate as of March 2026.
Any potential changes would require navigating a complex political landscape. The opposition has consistently opposed altering the capital gains tax discount, arguing it would negatively impact investment. Analysts suggest that if the government proceeds, it is more likely to be part of a future budget announcement rather than an immediate standalone policy.
