Northern Territory fares worst nationally for CGT discount benefits
ACOSS
People in the Northern Territory benefit less from the capital gains tax (CGT) discount than any other state or territory in Australia, new ACOSS analysis shows.
The NT’s average CGT discount per person is just $445 - the lowest of any jurisdiction in the country and less than a third of the national average of $1,470.
The electorate of Solomon receives $41.9m total benefit from the capital gains discount, an average of $522 per person. The electorate of Lingiari receives $18.2m, equivalent to $331 per person.
This is in stark contrast to the top five electorates nationally - all in Sydney and Melbourne - which capture $5.17 billion, or 22% of all CGT discount expenditure. For example, Wentworth in Sydney’s east receives the highest CGT discount benefit of around $1.76 billion, an average of $13,450 per person each year.
"It’s clear this tax break funnels billions into the wealthiest parts of our cities and country at the expense of those doing it tough,” said ACOSS CEO Dr Cassandra Goldie.
"This is money that could be invested in social housing, essential services, income support and the communities that need support the most. Instead, it’s being used to supercharge inequality. That is not a fair or sensible use of public funds."
“When a policy so clearly supercharges inequality while driving up home prices, it simply must be in the national interest for urgent reform.”
Read the ACOSS briefing note: The unfair distribution of the CGT discount by electorate. View the interactive map here.
Electorates in the Northern Territory by CGT discount benefit in 2022-23:
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Solomon: $41.9m total benefit / $522 per person
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Lingiari: $18.2m total benefit / $331 per person
ACOSS is calling on the Federal Government to:
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Halve the 50% CGT discount progressively over 5 years
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End negative gearing immediately for new investments, and phase it out over 5 years for existing investments
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Invest the savings in essential supports and services, including social housing and income support
Contact details:
Lauren 0422 581 506