We, the undersigned citizens and residents of Australia, respectfully draw your attention to proposed changes to the Capital Gains Tax discount that would remove or reduce the 50% discount for investment properties that were previously a main residence.

The 50% CGT discount for individuals and trusts holding assets for more than 12 months has been established law since 1999. It currently applies to investment properties, including those covered by the main residence exemption and 6-year absence rule.

*We are concerned that removing this discount for former homes would:

1. *Impact ordinary families*:  Many Australians rent out a former family home when relocating for work, serving in the ADF, caring for aging parents, or while saving to upsize. These are not property speculators.

2. *Worsen rental supply*:  If owners are penalised for renting out former homes, fewer properties will enter the rental market at a time of national housing shortage.

3. *Undermine financial planning*: Australians have made decades-long decisions on superannuation, retirement, and mortgages based on current tax law. Retrospective changes erode trust.

4. *Increase tax complexity*:  The current pro-rata rules already fairly apportion gains between “main residence” and “investment” periods. Removing the discount adds compliance costs without clear benefit.

5. *Disproportionately affect middle-income households*:  While framed as a tax on the wealthy, high-net-worth individuals tend to retain assets and use complex structures. The change will most affect average Australians who own one former home and rely on the discount as one of their few wealth-building tools.

6. *Reduce pathways to financial security*:  With limited accessible mechanisms to build wealth outside superannuation, removing the CGT discount strips opportunity from ordinary families and may increase long-term reliance on the age pension.

7. *Penalise inflation, not real gains*: Much of a property’s “capital gain” over decades reflects inflation, not real wealth creation. The 50% discount recognises this and prevents taxing Australians on illusory gains.

8. *Risk state revenue and housing turnover*: Higher CGT reduces transaction volumes as owners hold assets longer to defer tax. This lowers stamp duty collected by states, which funds schools, hospitals, and infrastructure.

9. *Contradict prior commitments*: In 2022, Prime Minister Anthony Albanese stated he would not change the tax structure or capital gains tax. Australians made financial decisions relying on that commitment. Reversing it now undermines public trust in government promises.

10. *Increase burden in an already high-tax nation*: Australia already ranks among the highest-taxing OECD countries for individuals. Further increasing CGT on middle-income asset holders adds pressure to households already facing cost-of-living challenges.

Your petitioners therefore respectfully request that the Government:
Commit to retaining the current 50% Capital Gains Tax discount for investment properties, including those that have at any time qualified as a main residence under existing provisions of the _Income Tax Assessment Act 1997_.

We believe this maintains fairness, stability, and housing supply while protecting the family home.