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The impact of tax rate changes on capital gains realisations: Evidence from Australia
journal contributionposted on 2023-05-19, 22:44 authored by Minas, J, Lim, Y, Evans, C
Australia experienced a major reduction to the rate at which capital gains are taxed on the introduction of the ‘50% CGT discount’ in the 1999–2000 fiscal year. Claims made at the time of this effective capital gains tax (CGT) rate reduction suggested it would lead to increased realisations as well as an increase in tax revenue. Using time series data from 1988–89 to 2014–15 we estimate the capital gains realisations response for Australian personal taxpayers. Our elasticity point estimates imply overall revenue losses from the introduction of the CGT discount.
Publication titleAustralian Tax Forum
PublisherTaxation Institute of Australia
Place of publicationAustralia
Rights statementCopyright 2018 Australian Tax Forum