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The impact of tax rate changes on capital gains realisations: Evidence from Australia
journal contribution
posted on 2023-05-19, 22:44 authored by Minas, J, Lim, Y, Evans, CAustralia 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.
History
Publication title
Australian Tax ForumVolume
33Issue
4Pagination
635-666ISSN
0812-695XDepartment/School
TSBEPublisher
Taxation Institute of AustraliaPlace of publication
AustraliaRights statement
Copyright 2018 Australian Tax ForumRepository Status
- Restricted