Australia's Capital Gains Tax Discount: More Certain, Equitable and Durable?

Investor behaviour in response to Australia’s capital gains tax

“…It was envisaged that the 1999 reforms to Australia’s CGT, particularly the introduction of the CGT discount, would have a positive effect on the equity market. Investors were expected to regard the new rules as having produced a lower tax rate (Freebairn, 2001; Kenny, 2005), leading to a reduced lock‐in effect (Hanlon and Pinder, 2008). 2 Slemrod (1982), for example, found that a CGT rate reduction for individuals in the Revenue Act of 1978 was followed by significantly higher trading volume on the NYSE.…”

“…Slemrod, 1982; Hanlon and Pinder, 2007). Given that economic efficiency is an important criterion in evaluating tax policy (Kenny, 2005), TLS research has potentially important fiscal policy implications.…”

'Boulevard of Broken Dreams': Planning, Housing Supply and Aff ordability in Urban Australia

“…The second dilemma most influenced by potential capital gains. This is partly a reflection of the nature of Australia's domestic housing investorslargely small investors typically owning 1-3 investment properties -but also a direct result of the change to the capital gains tax laws in 1999 (Kenny, 2005). Martin reported the impact of this change as follows:…”