{"id":77345,"date":"2026-08-21T09:52:07","date_gmt":"2026-08-21T09:52:07","guid":{"rendered":"https:\/\/www.europesays.com\/australia\/77345\/"},"modified":"2026-08-21T09:52:07","modified_gmt":"2026-08-21T09:52:07","slug":"cgt-row-foreign-investors-offered-15-per-cent-rate-while-aussies-lose-discount","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/australia\/77345\/","title":{"rendered":"CGT row: Foreign investors offered 15 per cent rate while Aussies lose discount"},"content":{"rendered":"<p>The federal government is facing fresh criticism over its controversial changes to capital gains tax (CGT), accused of creating one rule for foreign investors while taking discounts away from Australians.<\/p>\n<p>Under a new plan, foreign investors in Australian renewable energy assets will be offered a 15 per cent rate until 2040 in a bid to turbocharge the country\u2019s energy transition.<\/p>\n<p>Clean Energy Investor Group CEO Richie Merzian said on Thursday the concession increased \u201cthe chances that this much-needed source of capital will continue to flow into Australia and support our future economic prosperity\u201d.<\/p>\n<p>Mr Merzian noted more than 70 per cent of investment in Australian clean energy projects came from overseas.<\/p>\n<p>The move, which came amid a deal between the Labor government the Greens, was seized on as unfair by critics of the wider CGT changes announced in May\u2019s budget.<\/p>\n<p>Scrapping of the old 50 per cent GCT discount in favour of a rate based on inflation for all asset class caused widespread outrage from within the finance industry.<\/p>\n<p>Opponents have argued the changes would discourage investment in high-growth or start up ventures and instead see vast amounts of money parked in safe options like legacy stocks.<\/p>\n<p>It has also been credited with accelerating a downturn in Australia\u2019s housing market, along with the scrapping of negative gearing for existing homes, as the government sought to reduce incentives for property speculation.<\/p>\n<p>Stockspot founder Chris Brycki has described the new rules as a potential \u201cwrecking ball\u201d for the economy.<\/p>\n<p>He has said the CGT changes would make investment in smaller companies less attractive, and long-term returns would be smashed by higher taxes.<\/p>\n<p>Former government medical officer turned political commentator Dr Nick Coatsworth said the announcement this week had created \u201cone tax system for global capital, another for working Australians\u201d.<\/p>\n<p>\u201cIf you\u2019re any Aussie investing in a company you believe in you\u2019ll lose your 50% capital gains discount,\u201d he wrote on X.<\/p>\n<p>\u201cIf you\u2019re an overseas company investing in renewables we\u2019ll let you off with 15% tax.\u201d<\/p>\n<p>Fierce critic of the changes Geoff Wilson, the head of Wilson Asset Management, agreed with Dr Coatsworth and claimed the Albanese government was \u201cdestroying Australia ownership of Australian businesses\u201d. <\/p>\n<p>Mr Wilson said the government \u201cmust stop this insanity\u201d.<\/p>\n<p>\u201cAussie investors lose the 50% CGT discount for backing companies they believe in. Foreign capital gets a concessional 15% tax rate on renewables until 2040,\u201d he said.<\/p>\n<p>\u201cOne rule for global capital. Another for working Australians who actually take the risk here.<\/p>\n<p>\u201cThis is not reform. It\u2019s preference.\u201d<\/p>\n<p>Treasurer Jim Chalmers has defended the government\u2019s reforms against claims they would prevent Australians from getting ahead through investments.<\/p>\n<p>Mr Chalmers has said he believed some asset classes were being \u201cundercompensated\u201d by the previous scheme and the new settings would be a \u201cmore neutral\u201d CGT calculation.<\/p>\n<p>\u201cI understand that when you\u2019re making difficult tax reforms, ambitious tax reforms, which are all about cutting taxes for workers and making things fairer for first home buyers, there won\u2019t be unanimous support for that,\u201d Mr Chalmers said in June.<\/p>\n<p>\u201cIts always the case in this country, when you\u2019re engaged in difficult economic reform and particularly tax reform, that it will be contested, there will be people who campaign against that, and that\u2019s what we\u2019re seeing now.\u201d<\/p>\n<p>Mr Wilson has been among the leading opponents to the CGT reforms, calling it \u201ceconomic vandalism\u201d and <a class=\"body-link\" href=\"https:\/\/www.news.com.au\/finance\/economy\/australian-economy\/fund-manager-geoff-wilson-claps-back-at-albaneses-personal-spray-over-new-tax-proposal\/news-story\/8044c8be37f864e005417a992261dd68\" rel=\"nofollow noopener\" target=\"_blank\" data-tgev=\"event119\" data-tgev-container=\"bodylink\" data-tgev-order=\"8044c8be37f864e005417a992261dd68\" data-tgev-label=\"finance\" data-tgev-metric=\"ev\">earning personal a rebuke from Prime Minister Anthony Albanese<\/a>.<\/p>\n<p>\u201cGeoff Wilson has been a political participant for some period of time,\u201d Mr Albanese said in May.<\/p>\n<p>\u201cEveryone knows that that\u2019s the case, so I expect no different from Tony Abbott opposing whatever\u2019s in the budget, or John Howard will oppose whatever\u2019s in the budget.\u201d<\/p>\n<p>The Business Council of Australia has also been a vocal opponent of the government\u2019s new tax bill, which it said would increase costs for millions of Australians and leave the nation less competitive. <\/p>\n<p>Chief executive Bran Black said in June the reforms did \u201cnot stack up\u201d and a series of analysis and inquiries had unearthed more questions than answers.<\/p>\n<p>\u201cThe test for any tax reform is whether it increases investment, grows the economic pie and boosts living standards. This legislation fails that test,\u201d he said.<\/p>\n<p>\u201cDespite a rushed consultation process, rushed Senate inquiry and rushed parliamentary debate, significant questions remain unanswered, including basic issues like how many Australians will end up paying more and how much it will cost to comply with these changes.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"The federal government is facing fresh criticism over its controversial changes to capital gains tax (CGT), accused 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