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This year’s federal budget includes changes to negative gearing and capital gains (CGT) and discretionary trust tax concessions – policies that some blame for fuelling housing speculation and that disproportionately benefit the richest.

The top 1% of lifetime earners alone have received more than $700,000 in tax concessions over their working life from capital gains tax, negative gearing and discretionary trusts, according to figures in the budget.

In 2022-23 – the most recent data – the top 10% of income earners received 83% of the benefit of the capital gains tax concession and 37% of negative gearing. The vast majority of the benefit of both went to people earning above the then median income of $58,216.

Capital gains taxes are the tax paid on the profits (the “gains”) when you sell an asset – like a house – for a profit. Under changes introduced in 1999, investors get a 50% discount in capital gains tax if they hold on to the asset for more than a year.

Negative gearing (what the Treasury calls “rental loss”) is when an investment property makes a loss – like if the rental income doesn’t pay the mortgage – and the losses are tax deductible against a landlord’s income.

The vast majority of both tax benefits went to those who earn above the median income.

Of the more than 1 million tax filers in 2022-23, just 71% actually benefited from the capital gains tax discount. Almost all of this – 95% – went to Australians earning above the median income.

But even among the better off, there is a huge inequality – more than half of the capital gains tax benefit went to the top 1% of income earners.