Tax discounts for professional landlords hurt workers   :(
February 23, 2026 ACTU.
Australian Unions are calling for an overhaul of capital gains tax concessions to help drive a fairer housing system.

ACTU President Michele O’Neil told a Senate Inquiry into the Capital Gains Tax (CGT) in Melbourne today, the current tax discount privileges professional landlords and hurts working Australians who are being priced out of home ownership.

Australian Unions want the current CGT discount scaled back from 50% to 25% so that workers, including younger workers have more access to affordable housing near where they work.

The CGT discount has become a tax minimisation scheme allowing the very rich to pay lower rates of tax by investing in the property market, while working people struggle to get a roof over their heads.

Treasury data confirms most of the benefits of the discount flow through to the richest 1 per cent of Australians.

Since the revised CGT discount rate was set in 1999, housing affordability has worsened and the gap between house prices and workers’ incomes has widened.

In 1999, it took six times the average income to buy a house; today it takes 11 years of average income to buy a house – or around twice as much income.

The ACTU’s submission to the Inquiry also calls for restrictions on negative gearing tax breaks. 

Both the CGT discount and negative gearing tax breaks should be limited to one investment property.

The changes should apply to all new housing investments extending beyond a single investment property, with a five-year grand fathering period for existing investment properties giving investors time to adapt to the new arrangements.

Quotes attributable to ACTU President, Michele O’Neil:

“Australian workers need a tax system that doesn’t reward wealth more than it does work.

“Too many workers can no longer afford to live near where they work, leaving them stuck with long and costly commutes and less time to spend with their families.

“Under our proposal to scale back the CGT discount, a first-time home buyer would be more likely to win out against professional landlords and be able to get into home ownership.

“We need these changes now because a growing number of workers may never be able to save enough for a deposit while accelerating rents and house prices outpace the money they can save each week.

“The tax system should not provide the means for professional landlords to have their housing speculation subsidised by ordinary workers, who are being priced out of housing and are paying much higher rates of tax, in line with their income.

“Australian Unions want the revenue these reforms would generate to expand the housing stock available and be co-invested with the states into public and social housing.

“We are campaigning for a fairer housing and tax system that deliver security and dignity to working people.”

Quote:

ACTU President Michele O’Neil told a Senate Inquiry into the Capital Gains Tax (CGT) in Melbourne today, the current tax discount privileges professional landlords and hurts working Australians who are being priced out of home ownership.

What an idiot. Australian home owners do not pay any capital gains tax on their own home (residence). Furthermore, they do not pay any tax on the rent they save. It is probably the best investment you can make from a tax perspective. Meanwhile landlords do pay tax on both the rental income and the capital gains.

What is with this constant campaign of lies from the Greens and unions?

FD,

Quote:

Furthermore, they do not pay any tax on the rent they save.

For God's sake - don't give the Govts any ideas -
they are inventing new taxes all the time -
as both State and Federal Govts are bankrupt.   ::)

Professional landlords? Commercial or residential? How many properties to become a professional landlord? ::)

lee wrote on Feb 26^th, 2026 at 3:57pm:

Professional landlords? Commercial or residential? How many properties to become a professional landlord? ::)

It wouldn't matter how many.

To be a professional landlord you would be receiving most of your income from rent.

professional: engaged in a specified activity as one's main paid occupation

greggerypeccary wrote on Feb 26^th, 2026 at 4:04pm:

lee wrote on Feb 26th, 2026 at 3:57pm: Professional landlords? Commercial or residential? How many properties to become a professional landlord? ::) It wouldn't matter how many. To be a professional landlord you would be receiving most of your income from rent. professional: engaged in a specified activity as one's main paid occupation

Negative gearing = Rent doesn't cover costs

Nice of you to show those with negatively geared properties aren't professional landlords

greggerypeccary wrote on Feb 26^th, 2026 at 4:04pm:

To be a professional landlord you would be receiving most of your income from rent.

Most of your income, not very specific is it? You know above $10,000, above $100,000?

lee wrote on Feb 26^th, 2026 at 4:26pm:

greggerypeccary wrote on Feb 26th, 2026 at 4:04pm: To be a professional landlord you would be receiving most of your income from rent. Most of your income, not very specific is it? You know above $10,000, above $100,000?

It wouldn't be a dollar amount - it would be a percentage.

If you owned one rental property and you rented it out for $600 per week, and that was your only source of income, you'd be a professional landlord.

'Most' generally means more than half.

So, even if you also stacked shelves at Woolies a few nights a week and were paid $200, you'd still be considered a professional landlord.

It's really not that difficult.

I know someone who was a professional landlord.

He ended up losing heaps of money as just about every time a tenant moved out
or was forced to move out after not paying their rent -
he was left with giant repair bills.
About $22,000 on average to get each place livable again.
e.g.
dog turds stuck in carpet - all the carpet would have to replaced,
holes punched in walls,
appliances like stoves, heaters, extractor fans
and items like gas hot water heaters no longer working,
replacing locks and broken doors,
repainting every room.

His solution was to sell all his places
and put the money into Super.
He now gets a generous monthly payment from his Super for his retirement
and all his problems have ended.   :)

greggerypeccary wrote on Feb 26^th, 2026 at 4:41pm:

If you owned one rental property and you rented it out for $600 per week, and that was your only source of income, you'd be a professional landlord.

Ah so not net income but gross income. That doesn't sound very professional. ;)