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Wealthiest electorate pockets triple the CGT discount than others in WA

ACOSS

Perth’s wealthiest electorate receives three times more benefit from the capital gains tax (CGT) discount than any other electorate in Western Australia, highlighting how the tax break is skewed towards the state’s wealthiest communities.

 

ACOSS analysis shows that the electorate of Curtin, where the average taxable income is $127,077, receives $579.3 million in CGT discount benefit annually, with the average person benefiting $5,043 per year.

 

That is over three times more than the next highest WA electorate of Tangney, which receives $192.6 million, with each person benefiting $1,608 per year on average.

 

Nationally, Curtin ranks sixth out of 150 electorates by average CGT benefit and is the only WA seat in the country’s top ten. Its average benefit is more than four times the WA state average of $1,140. 

 

The contrast with WA’s lowest-receiving electorate is stark, with people in Brand receiving an average benefit of just $351 per year. That is over 14 times less than Curtin.

 

ACOSS’s analysis of all 150 federal electorates shows the stark inequality across the country, with the CGT discount benefit flowing overwhelmingly to capital cities and mostly to eastern states. 

 

Perth’s average CGT discount per person is $1,215, while the rest of the state averages $798. The national average benefit is $1,490, with an average of $2,402 in Sydney, and $1,647 in Melbourne. 

 

Nationally, the top five electorates - all in Sydney and Melbourne - capture 22% of all CGT discount expenditure.

"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.

Top electorates in Western Australia by CGT discount benefit in 2022-23:

• Curtin: $579.3m total benefit / $5,043 per person

• Tangney: $192.6m total benefit / $1,608 per person

• Perth: $169.5m total benefit / $1,361 per person

• Fremantle: $138.3m total benefit / $1,264 per person

• Moore: $134.7m total benefit / $1,233 per person

 

Lowest-receiving electorates in 2022-23:

• Cowan: $46.4m total benefit / $431 per person

• Pearce: $42.5m total benefit / $399 per person

• Brand: $35.1m total benefit / $351 per person

 

ACOSS is calling on the Federal Government to:

• Halve the 50% CGT discount progressively over 5 years

• End negative gearing immediately for new investments, and phase it out over 5 years for existing investments

• Invest the savings in essential supports and services, including social housing and income support

Contact details:

Lauren 0422 581 506