Punters pay but the big guys won’t

11 June 2026

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Punters pay but the big guys won’t  

Under its new policy of $80 billion in higher taxes on housing and everything else, Labor has created massive tax arbitrage to protect its close allies and supporters.

For the same investment, say a purchase of an existing investment property, there are now a range of Capital Gains Tax (CGT) rates - from a 10% for super funds, even 15% for foreign funds, but up to 47% for individual Australians:  

Different CGT rates for the same investment under Labor’s proposed tax grab‍

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Over the next few weeks Labor will try and legislate a punitive tax regime for individuals, while carving out the superannuation funds.

This model promotes the Labor ideas that superannuation funds should own most of the economy and also become large landlords. As the biggest beneficiary of the Housing Australia Fund, superannuation funds are living it up under this government.

Superannuation funds were explicitly exempt from Labor’s CGT tax hikes, as per page 21 of Budget Paper 2. These are Labor’s mates in the union-backed funds that get special treatment. So they typically pay an effective CGT rate of 10% on assets held for more than 12 months.

Foreign fund managers purchasing property through a Management Investment Trust would pay 15% withholding tax on eligible fund payments relating to real property, including capital gains.

Companies continue to be exempt from the CGT discount and pay capital gains as ordinary income at their company income tax rate - either 25% or 30%.

Individuals will be forced into the new CPI indexed capital tax regime from 1 July 2027, with a minimum rate of 30 per cent on ‘real gains’. Otherwise real gains from income will be taxed at the marginal tax rate, with individuals being slugged between 30%-47%, depending on their income.

Individual teachers, nurses, tradies and others investing in their own name will face higher taxes, compared with super funds. It is yet another free kick to union super funds.

Labor’s tax grabs will discourage personal investment, reduce incentives to take risks, and further tilt the playing field away from ordinary Australians.

Labor needs to come clean on this tax arbitrage. We will be pursuing this through the upcoming Senate inquiry into Labor’s tax hikes, with hearings to be held next week - 15 to 16 June.

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