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Capital gains tax discount winners and losers from potential budget change to inflation-adjusted regime

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Reverting to the pre-1999 capital gains tax discounting method of adjusting for inflation may harm younger people and help older generations if it is rolled out across all asset classes, tax experts say.

There are always winners and losers from these kinds of changes, but in this case, it is unlikely to improve intergenerational equity – a slogan the government has deployed to justify the tax change, expected to be announced in the May 12 budget.

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