Senate Inquiry on CGT and Negative Gearing
Oxfam Australia is urging a comprehensive reform of the tax system. This week, the Senate Economics Legislation Committee is evaluating changes to capital gains tax (CGT) and negative gearing in the Treasury Laws Amendment (Tax Reform) Bill 2026.
Oxfam’s analysis shows that current CGT discounts and negative gearing policies disproportionately benefit high-income individuals. Those earning over $1 million receive an average CGT discount of $271,610.
These tax concessions have encouraged speculative investments in existing housing, costing the Budget billions annually in foregone revenue. this has increased housing unaffordability, according to Oxfam.
Jennifer Tierney, Chief Executive of Oxfam Australia, emphasised the urgency of these reforms. She stated, “Negative gearing and the capital gains tax discount are key drivers of inequality in Australia, making it harder for people to access safe and affordable homes.”
Impact on Housing and Inequality
The existing tax policies have intensified wealth concentration among a small percentage of households. This limits governmental capacity to fund poverty reduction initiatives in Australia and the broader region.
Proposed changes aim to mitigate speculative investment in housing, reduce market pressure, and improve access to affordable housing. Oxfam asserts that these reforms are an essential step towards a more equitable tax system.
Tierney further stated, “At present, the tax system is tilted towards wealth accumulation for those who already have it. These reforms are about creating a fairer system that prioritises housing security and opportunity, rather than tax advantages for the already wealthy.”
Oxfam Australia is calling on Senators and Members of Parliament to support the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026. The organisation advocates for the passage of these reforms without delay.
If passed, the reforms could redirect billions in foregone revenue towards essential services and infrastructure. This could significantly impact poverty reduction efforts and enhance government capacity to invest in community welfare.
The inquiry into these tax changes comes as Australia faces a housing crisis, with rapidly rising house prices and declining home ownership rates. Since the CGT discount was introduced, inequality has widened, making reform overdue, according to Oxfam.
