Overview

• The McKell Institute has formally proposed raising the CGT discount to 70% for new units and cutting it to 35% for existing detached homes
• Modelling for the proposal estimates an extra 130,000 homes could be built by 2030, narrowing the shortfall against the federal 1.2 million target
• Current tax settings deliver a 50% CGT discount costing about $19.5 billion, with most benefits flowing to established property investors rather than new construction
• Australian Bureau of Statistics data show housing starts are up but completions remain below the levels required to meet annual homebuilding goals
• Prime Minister Anthony Albanese and Treasurer Jim Chalmers will host a three-day economic roundtable in August where CGT reform and housing supply measures will be key agenda items