| Summary: | This article compares the preferential tax treatment of capital gains in Australia
and in Canada, with a view to determining whether there are any lessons from the
Australian experience that may be of relevance to Canada. The tax treatment of capital
gains is similar in the two jurisdictions in that both apply a 50 percent inclusion rate
or the equivalent. Several aspects of the taxation of capital gains in Australia might
be considered cautionary from the Canadian perspective. The Australian experience
indicates that winning support for an increase in the capital gains inclusion rate can prove difficult, as demonstrated by the unsuccessful proposal by the Australian Labor
Party, during the 2019 federal election campaign, to effectively raise the inclusion rate to
75 percent.
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