7am Beer, gas and capital gains tax
10 snips
Feb 27, 2026 Richard Denniss, economist and Executive Director of the Australia Institute, explains why the 50% capital gains tax discount exists and who it helps. He talks about how it distorts housing, which vested interests resist reform, and whether politics are finally shifting. He also connects beer excise, gas taxation and fairness in resource revenues.
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How The 50% Capital Gains Discount Warps Incentives
- Australia gives a 50% tax discount on capital gains, so $100,000 earned from assets faces far less tax than $100,000 earned from work.
- Richard Denniss links the Howard-era policy to perverse incentives that boosted housing speculation and skyrocketing prices since its introduction.
Denniss Declares Union And Industry Experience
- Richard Denniss declares his background: 30 years in trade unions and 26 years working for Lindsay Fox, illustrating his cross-sector experience.
- He uses that credibility to critique 2019 politics and show how warnings about taxing wealth were politically weaponised.
2019 Election Used To Deter Tax Reform Mythbusted
- Denniss argues that claims Labor were punished in 2019 for proposing CGT changes are misleading because Labor's vote rose in the wealthiest electorates.
- He highlights how elites successfully scare politicians into avoiding tax reform despite evidence of public support for change.