Australia's Capital Gains Tax Overhaul Proposal

Economists Support Return of Capital Gains Tax

A comprehensive overhaul of Australia's capital gains tax system is being proposed, with leading economists backing the return of a capital gains tax to improve the budget by a staggering 5 billion dollars annually. This development comes amidst discussions in the United States about raising capital gains rates, with President Joe Biden's 2025 budget proposal suggesting an increase in the top marginal rate on long-term capital gains and dividends up to 44.6 percent.

Biden's 2025 Budget Proposal

President Biden's proposed budget includes a substantial increase in the top capital gains tax rate, potentially reaching 44.6 percent. This rate, combined with state taxes, could significantly impact individuals with taxable incomes exceeding $518,900, who currently pay 20% on their long-term capital gains. The proposed changes aim to address perceived disparities in tax burdens between different income groups.