The Most Explosive Tax Debate in Australia Is Back

The Most Explosive Tax Debate in Australia Is Back

From The Economy, Stupid by ABC Australia

February 19, 2026 · 30 min

About this episode

The episode discusses the contentious tax debate in Australia regarding capital gains tax and its implications for the housing market.

Australia does something a bit weird: if you make money selling a house or shares, you get taxed at half the rate you’d pay on your actual job. Nice if you’re the one pocketing the profit… not so great if you’re trying to buy your first place and keep getting outbid by investors. People have argued about this discount for years; it’s political TNT. Bill Shorten tried to change it twice and got burned both times. Now Labor’s back in government, the issue’s landed in a Senate inquiry, and it’s shaping up to be the first real showdown between Treasurer Jim Chalmers and newly appointed Opposition Leader Angus Taylor. Is this tax break helping the country or just helping those already ahead? And if we tweaked it… would anything actually get better? Guests: Brendan Coates – Program Director, Housing and Economic Security, Grattan Institute. Cathal Leslie – Generation Z economist who has worked at the Productivity Commission, the Australian Treasury, and the OECD in Paris, now working in the AI sector.

People in this episode

Guests: Brendan Coates, Cathal Leslie

Topics covered

  • tax debate
  • housing market
  • economic policy
  • politics
  • investors
  • government

Keywords

  • tax debate
  • capital gains tax
  • housing affordability
  • political showdown
  • economic security

Mentioned in this episode

Organizations: Grattan Institute, Productivity Commission, Australian Treasury, OECD

Places: Australia

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