Would Scrapping the Capital Gains Tax Discount Fix Australia’s Housing Crisis? | GIRT EP 001

In this episode of GIRT, Owen Rees and Ethan Urch break down one of the most contentious policy debates in Australian politics: whether scrapping the 50% capital gains tax discount would actually make housing more affordable.

Australia’s housing crisis is forcing old tax questions back onto the agenda — especially the 50% Capital Gains Tax (CGT) discount. In Episode 001 of GIRT, Owen Rees & Ethan Urch break down how the CGT discount works, how it interacts with negative gearing, and whether reform would meaningfully change housing affordability — or mainly change fairness and incentives.

What you’ll learn:

• What the CGT discount is (and what it isn’t)

• How it shapes investor incentives in housing markets

• Why affordability is often measured using the median housing multiple

• What Victoria’s investor taxes might reveal about behaviour and outcomes

• Why immigration debates often miss the infrastructure/supply context

• The deeper question: should housing be treated as shelter or an asset class?

FAQ

What is the CGT discount in Australia?
It reduces the taxable portion of a capital gain by 50% for eligible assets held longer than 12 months.

Does the CGT discount affect house prices?
It can increase investor demand at the margin by making property gains more tax-advantaged, though estimates of the overall price effect vary.

Is housing unaffordable mainly because of supply or tax?
Both matter. Supply constraints push prices up, and tax settings can amplify demand and shape where investment flows.