On 4 November 2025, the Senate resolved that the Select Committee on the Operation of the Capital Gains Tax Discount be established.

Further detail about the scope of the inquiry is available in the committee’s terms of reference.

The committee is to present a final report by 17 March 2026.

Terms of Reference

That a select committee, to be known as the Select Committee on the Operation of the Capital Gains Tax Discount, be established to inquire into and report on:

1. the contribution of the capital gains tax (CGT) discount to inequality in Australia, particularly in relation to housing;
2. the role of the CGT discount in suppressing Australia’s productivity potential by funnelling investment into existing housing assets;
3. how the CGT discount influences the types of assets purchased and whether these classes of investments are productive or speculative;
4. the distributional effects of the CGT discount;
5. the use of the CGT discount by trusts;
6. whether this tax discount is fulfilling its original intended purpose;
7. whether the CGT discount has a role in Australia’s future tax mix; and
8. any other related matters.