iscover 
The party has urged the Labor government to review the discount in the upcoming Mid-Year Economic and Fiscal Outlook (MYEFO), stating an overhaul would be a “massive Christmas gift” for renters and first home buyers.
Introduced in 1999, the capital gains tax (CGT) discount is a longstanding tax concession that reduces the taxable portion of a capital gain by 50 per cent for assets held for longer than a year.
While the CGT discount aims to encourage long-term investment, the Greens have said it pushes up house prices through speculation and disadvantages would-be first home buyers.
The government has modelled potential changes to the CGT discount but has not implemented any policy changes so far.
The Greens have established a Senate inquiry into the discount, which will report by 17 March. Among other aims, the inquiry will report on the contribution of the CGT discount to inequality in Australia and whether it suppresses productivity potential by funnelling investment into existing housing assets.
“The best gift for any renter this Christmas is a fix to the utterly cooked housing market,” said Senator Larissa Waters, Australian Greens leader and climate spokesperson.
“Millions of people have given up on the prospect of ever owning their own home.
“Wealthy property investors get a leg-up from the government at auction, which supercharges house prices and locks first renters and home buyers out.
“Labor must use next week’s mini-budget to announce that the free ride for wealthy property investors is over.”
Senator Nick McKim, Greens Treasury spokesperson, said the CGT discount is “turbocharging” wealth inequality and intergenerational inequity.
“Fifty per cent of the benefit goes to the top 1 per cent of income earners and 71 per cent of the benefit goes to people over 50. It means that people who work to earn a living are paying twice the tax than someone making the same money flipping investment properties.
“Labor can’t continue to hand over billions in tax breaks for wealthy property investors that are locking first home buyers out of the market, then claim at MYEFO that there’s no money to help renters.
“There’s no better time to commit to change. Ending the era of property hoarding would help renters, first home buyers and the national budget, and be the talk of every Christmas lunch.
“It shouldn’t take the Ghost of Christmas Future for Labor to see that this unfair measure has got to end.”
The Treasury has been approached for comment but had not received one by the time of publication.
[Related: SA Liberals pledge to scrap stamp duty]