Fair Agenda

Dear Minister Gallagher, 

We are writing to you as organisations and advocates who share a concern for women’s economic security and the impacts of the Capital Gains Tax discount. 

We are concerned that the Capital Gains Tax discount is contributing to the housing crisis, compounding gender wealth inequality, and hurting women. Right now, this tax setting incentivises people buying and selling properties they do not live in. It’s driving investors to compete in the market - and push up prices for people who are just trying to own their own home. 

It also means women - particularly single mothers, older women, and those escaping domestic and family violence - are being pushed further to the margins of an already unaffordable housing market. 

As well as distorting the costs of housing - the Capital Gains Tax discount directs billions of dollars that should be collected in tax revenue, and instead provides a hand out to property investors. At the same time, this setting reduces the tax pool available to resource critical public services - like public housing, healthcare, education, and domestic and sexual violence services.

The Capital Gains Tax discount directs billions of dollars to wealthy property investors, who are disproportionately men. The data shows this tax rule funnels 83% of these billions of dollars back to the top 10% of income earners; and 59% to the top 1% of households.

While women continue to be paid less on average, are more likely to work part-time, and take on the majority of unpaid caring responsibilities, this tax rule is investing public money in ways that are perpetuating wealth and gender inequality. 

We believe everyone deserves a safe and stable home. Yet current federal policy settings are leaving so many women out in the cold.

We urge you, as Minister for Women and Minister for Finance, to champion a fairer tax system and meaningful reform to this unfair tax rule. 

In particular, we note our concern that: 

• Simply watering down the CGT discount amount from 50 per cent to 33 per cent doesn’t do enough to correct the perverse incentives this rule has created in our housing system; and won’t meaningfully improve housing affordability or outcomes for women. 
•  Grandfathering arrangements risk locking in the distorted benefits of this unfair rule, and entrenching the disadvantage it has caused to women.

We need a fairer system - one where everyone contributes fairly and equitably - and where government settings support access to affordable housing, not subsidise speculation for the already wealthy.

We urge you to use your role as Minister for Women and Minister for Finance to champion meaningful reform to the Capital Gains Tax discount in the upcoming budget - to end rules that subsidise the wealthy; perpetuate gendered inequality and exacerbate the housing crisis. We call on you to drive reforms that support a future where every person is able to live with safety and dignity; and access secure and affordable housing.