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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, 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.

History

Publication title

Australian Tax Forum

Volume

33

Issue

4

Pagination

635-666

ISSN

0812-695X

Department/School

TSBE

Publisher

Taxation Institute of Australia

Place of publication

Australia

Rights statement

Copyright 2018 Australian Tax Forum

Repository Status

  • Restricted

Socio-economic Objectives

Taxation; Law reform

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