Australia's capital gains tax overhaul sparks housing slowdown and business succession worries

The Australian federal budget announced sweeping reforms to capital gains tax, removing the long‑standing 50 % discount and replacing it with an inflation‑indexation model that will apply to all asset classes, including investment property, shares and businesses. The government signaled that carve‑out exemptions for certain investors are still being consulted, but no clear deadline has been set.

The changes have triggered criticism from opposition parties and concern among property sellers, with the housing market in Western Australia already showing a slowdown and forecasts of a 10‑20 % dip that could cost the state hundreds of millions in stamp‑duty revenue. Business leaders, such as MYOB CEO Paul Robson, warn that uncertainty around the reforms could disrupt succession planning for retiring baby‑boomer owners, affect valuation of mid‑market firms and increase reliance on professional advisers to navigate the new rules.