CBA tips $18 bn housing tax perks ‘most likely’ to be cut

Analysis of Treasury estimates has the government currently foregoing about $15-18 billion worth of lost tax revenue by allowing individuals and trusts to use these discounts and deductions on their property sales and rentals – with CGT making up the bulk of about $13 billion. It’s believed the figures could run higher given record home price gains since the pandemic.

Commonwealth Bank chief economist Luke Yeaman said “housing will bear the cost of stronger growth”.

Mr Yeaman, who was federal Treasury’s deputy secretary and head of the government’s macroeconomic group throughout the pandemic, flagged the measures as the “most likely step” by policymakers seeking to reform the government’s generous tax breaks.