Australia’s capital gains tax (CGT) discount will cost nearly $250 billion in lost revenue over the next decade. New data from the Parliamentary Budget Office shows the discount has already cost $205 billion since its start in 1999. The 50% tax break is given to people holding investments for over 12 months. It benefits mostly the richest 1% of taxpayers, who get nearly 60% of this year’s benefit. Retirees without taxable income and people earning above $362,900 also gain the most. The discount, introduced by the Howard government, is blamed for making housing an investment tool for wealthy Australians. This has pushed up property prices and hurt first-home buyers. Labor promised to reduce the discount in 2016 and 2019 but lost elections. Senior Labor leaders remain open to changes in the upcoming budget but stress no policy shift yet. Treasurer Jim Chalmers said last week he is “open” to big tax reform ideas, focusing on fairness between generations. Greens Senator Nick McKim, leading a parliamentary inquiry on CGT, called the tax break “the most unfair tax rort in the country.” He warns it fuels speculation, raises home prices, and blocks renters from owning homes. NSW Treasury says current CGT rules worsen housing affordability by favoring wealthy investors. Wentworth MP Allegra Spender supports balanced tax changes to address intergenerational fairness. The Grattan Institute estimates ending the CGT discount could raise $6.5 billion yearly if changes take effect immediately. The Greens inquiry will hold hearings this month with a report due by March 17.