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The impact of tax rate changes on capital gains realisations: evidence from Australia


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, the authors estimate the capital gains realisations response for Australian personal taxpayers. The authors’ elasticity point estimates imply overall revenue losses from the introduction of the CGT discount.

Author profiles

John Minas
John is a Senior Lecturer, Tasmanian School of Business and Economics, University of Tasmania, and Adjunct Research Fellow, Griffith Law Futures Centre. - Current at 20 April 2020
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Youngdeok Lim
Youngdeok is a Senior Lecturer, UNSW Business School, UNSW Australia.
Current 1 October 2020
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Prof Christopher Evans
Chris is a Professor, School of Taxation & Business Law, UNSW Sydney, Extraordinary Professor, Department of Taxation, University of Pretoria, and International Research Fellow, Centre for Business Taxation, University of Oxford. - Current at 27 October 2020
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