Report Reveals Geographic Inequality in Capital Gains Tax Benefits Across Australia

Canberra - A comprehensive federal electorate analysis released Friday by the Australian Council of Social Service (ACOSS) has exposed a profound structural divide in the Australian tax system, revealing that capital gains tax (CGT) concessions are heavily skewed toward a small number of wealthy urban enclaves at the expense of regional and low-income communities.

The data, which maps CGT discount expenditure across all 150 federal electorates, revealed an extreme concentration of wealth.

Nationally, the top five boundaries, located exclusively in the affluent corridors of Sydney and Melbourne, capture 22 percent of the total national tax benefit, totaling A$5.17 billion in concessions.

In contrast, the bottom 10 electorates receive a combined share of just 1.6 percent.

This disparity is headlined by the Sydney electorate of Wentworth, which receives the highest benefit in the country at approximately A$1.76 billion annually, or an average of A$13,450 per person.

ACOSS Chief Executivve Officer, Dr. Cassandra Goldie, stated that it is clear this tax break funnels billions into the wealthiest parts of the country at the expense of those doing it tough.

She argued that the funds could instead be invested in social housing, essential services and income support.

Dr. Goldie maintained that when a policy so clearly supercharges inequality while driving up home prices, urgent reform becomes a matter of national interest.

In Queensland, Brisbane’s inner electorates emerge as the primary beneficiaries.

The electorate of Brisbane, where the average taxable income is A$99,285, receives A$527.6 million annually, averaging A$3,873 per person.

This is more than 2.5 times the national average of A$1,470.

Other high-earning Queensland seats include Ryan at A$295 million, Griffith at A$278.9 million and Moncrieff at A$275 million.

Conversely, regional areas like Herbert in the state’s north receive just A$41.6 million, an average of A$409 per person, which is over 12 times less than the city center.

Kennedy and Oxley also rank among the lowest, receiving A$50.4 million and A$46.4 million respectively.

Western Australia (WA) exhibits the most extreme intra-state disparity in the nation.

The electorate of Curtin, where the average taxable income is A$127,077, receives A$579.3 million in annual benefits, with the average person pocketing A$5,043.

This is triple the benefit of the next highest WA electorate, Tangney, which receives A$192.6 million.

Other notable WA beneficiaries include Perth at A$169.5 million, Fremantle at A$138.3 million, and Moore at A$134.7 million.

At the bottom of the scale, the electorate of Brand receives just A$35.1 million, or A$351 per person, representing a 14-fold difference compared to Curtin.

Other low-receiving WA seats include Cowan at A$46.4 million and Pearce at A$42.5 million.

The Northern Territory and Tasmania are significantly disadvantaged by the current policy framework.

The Northern Territory records the lowest benefit in the country, with an average of A$445 per person, which is less than a third of the national average.

Within the Territory, Solomon receives A$41.9 million while Lingiari receives only A$18.2 million, equivalent to A$331 per person.

Tasmania receives just one percent of national expenditure, worth roughly A$235 million.

The Tasmanian electorate of Clark ranks highest in that state at A$66.3 million, yet only reaches 71st place nationally.

Other Tasmanian figures include Franklin at A$50.8 million, Lyons at A$46.1 million, Bass at A$40.2 million, and Braddon at A$31.9 million.

ACOSS is formally calling on the Federal Government to halve the 50 percent CGT discount progressively over five years and end negative gearing for new investments immediately.

The organization suggests that the current system is not a fair or sensible use of public funds and that savings should be redirected to communities that need the most support.