The proposal would modify the capital gains tax (CGT) discount and negative gearing arrangements as follows:

• Negative gearing would be removed for all assets, excluding the first investment property held by an entity that was acquired before the start date.
• The 50% CGT discount would be removed for investment properties, excluding the first investment property held by an entity that was acquired before the start date.
  • For all other assets that are not investment properties, the 50% CGT discount would be replaced by indexation of the cost base.

The proposal would start on 1 July 2025.