Australia scraps three-decade capital gains discount, shifting to inflation-indexed accounting

Australia scraps three-decade capital gains discount, shifting to inflation-indexed accounting

From July 2027, Australia replaces the 50% capital gains discount—in place since 1999—with inflation-indexed cost accounting. A 30% minimum tax caps the benefit. Earlier sales retain the old discount. The change reverses a Howard-era policy widely criticized for inflating asset prices and widening the tax gap between wage earners and investors.

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