Former prime minister Paul Keating has called on the Albanese government to maintain its proposed changes to capital gains tax (CGT), warning that exempting commercial assets would further distort the economy. In an interview with Guardian Australia, Keating said the current 50% CGT discount, in place since 1999, had diverted financial resources into housing and damaged productivity.
Keating's comments come as small businesses and the startup sector oppose the government's plan to replace the discount with an inflation-based model, announced in this month's federal budget. The legislation is set to be introduced to parliament on Thursday. Keating argued that the shift in capital taxation is so marginal that it would not hinder entrepreneurial activity.
Meanwhile, Australia's inflation rate has eased to 4.2%, but economists warn that an interest rate rise could still be on the horizon. The data, released on Wednesday, provides some relief but remains above the Reserve Bank's target range. The bond market is pricing in a potential rate hike in the coming months as the central bank grapples with persistent price pressures.
In other news, a police royal commission heard that officers were outgunned during the Bondi beach massacre due to a lack of long-arm rifles. The inquiry continues to examine the response to the deadly attack. Separately, Justin Stevens has resigned as ABC director of news after four years in the role.
