The Australia Desk · Story 3

The CGT discount removal is exactly what we've been asking for, so why is everyone losing their minds?

A Reddit post in r/AusFinance argues that removing the capital gains tax (CGT) discount is exactly what many have called for, yet notes widespread backlash. The discussion reveals sharp disagreement over whether the change should apply to shares as well as property, and whether it will actually help housing affordability.

The debate reflects a core tension in Australian tax policy: balancing housing affordability against incentives for long-term investment in shares. How this plays out could reshape retirement savings strategies and investor behaviour across asset classes.

Key details

  • The post in r/AusFinance received 1,385 upvotes and 1,152 comments as of 20 May 2026.
  • One top comment (749 upvotes) suggests the backlash is not representative, comparing it to skewed online reviews.
  • Another comment (430 upvotes) identifies the 30% tax floor on CGT income as the real problem, not the discount removal itself.
  • A commenter (283 upvotes) argues that removing the discount on shares disincentivises long-term saving, especially given bracket creep.
  • Several commenters note that the discount removal applies to shares, not just property, which they say undermines the policy’s stated goal.

Discussion angles

  • Silent majority: the loudest critics may not represent overall opinion.
  • The 30% tax floor on CGT income is a separate, more damaging issue.
  • Removing the discount on shares hurts retirement savings, not just housing speculation.
  • Investors squeezed first-home buyers in property, but no such argument applies to shares.
  • If shares lose the discount, investors might as well keep money in housing, defeating the policy.

Top comments

Community reaction is mixed: some support the principle but criticise the scope, while others oppose the change entirely, arguing it unfairly targets share investors and fails to address the housing problem. A minority view holds that the backlash is overblown and not representative.

Not everyone is losing their minds. I'm not Only those who don't like it will comment. It's not a representative sample I see it like google reviews. You gets lots of 1 and 5 and very few 3....
u/Anachronism59 · 749 score
The 30% tax floor on CGT income is the problem.
u/AquilaAdax · 430 score
Increasing tax on shares achieves nothing but a disincentive to put money away for your future. Brackets haven’t been indexed and don’t appear to be so there’s a very good chance we end up in the 47% tax bracket. That’s not helpful to anyone....
u/sbruce123 · 283 score
There’s a valid argument that investors were squeezing first home buyers out of the property market. There is no such argument with regard to shares, and so there would be no mole to whack....
u/open_g · 238 score
Because it applies to shares as well. So what’s the point, might as well keep it in housing.
u/Astro_Ace7 · 108 score
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