Discounts on capital gains tax have done little to address the reason why the measure was introduced, Australia's peak union body says, as the federal government weighs up whether to change the controversial measure.
An inquiry into capital gains tax will begin hearings on Monday, with union officials and leading economists set to give evidence.
The discount on capital gains tax, introduced in 1999 by the Howard government, allows for a 50 per cent reduction in the tax on investment properties sold after being owned for a year.
In its submission to the inquiry, the Australian Council of Trade Unions called for the discount to instead be lowered to just 25 per cent to make it more equitable.
While the discount was introduced to make capital gains tax more internationally competitive and enable more efficient management of assets, the union said 26 years later, little of this intent has been met.
'The CGT discount has been a key mechanism allowing the very rich to pay lower effective rates of tax,' the ACTU's submission said.
'The latest Treasury data from December 2025 shows that most of the benefits of the discount are captured by the richest one per cent of Australians.'
An inquiry is set to consider whether Australia's capital gains tax discount should be changed
The union's president Michele O'Neil will be among those giving evidence on the first day of hearings, as well as trade union figure Bill Kelty and economist Alan Kohler.
The ACTU said the reduction to the discount would not be a complete answer to solve housing issues, but would go a long way to addressing issues.
While the federal government has been tipped to introduce changes to the discount in its May budget, Prime Minister Anthony Albanese did not confirm whether the move was on the cards when pressed.
'What we are doing is tax cuts this July, another tax cut the following July and when it comes to housing, we're doing our best to deal with the supply question,' he told Sky News.
