How to fix CGT

February 26, 2026

Bob McMullan’s fix for capital gains means for example an investor who makes say $100,000 capital gain over some period of time (lets say 2-3 years) may pay up to 49 per cent in tax less a 25 per cent discount= $35,000 in tax. And if real inflation (higher than the unrealistic narrow basket of goods in the inflation index) runs around say 5 per cent, that leaves capital at perhaps real value of $0000 when sold less $35000 equals $55000. Perhaps one million dollars was used to buy the property which could have earned 10 per cent plus elsewhere or $30000 or in real terms $80000. And this is a best case scenario where rent paid covers all costs. Governments for decades have been pulling back social housing spend. In pulling back incentives for investors many of the smaller and large investors may be spooked out of the market to build homes. And of course, if the investment goes sour, into the negative, unlike wage earners the investor is not “paid” for his or her risk taking and efforts. Not sure this should be a priority, better to focus on reducing out of control spending and other demand factors like excessive levels of immigration.