Why Keep the 50% Capital Gains Tax Discount?

There’s been a lot of talk lately about reducing Australia’s 50% capital gains tax (CGT) discount, with some arguing it mostly helps the wealthy. However, it’s important to consider the other side: hundreds of thousands of everyday Australians benefit from this discount – not just billionaires. And historically, Australia didn’t tax capital gains at all until 1985. So before jumping to cut the CGT discount, let’s look at why it exists and who it helps.