Australia’s housing affordability debate has intensified after Matt Comyn, the chief executive of Commonwealth Bank, publicly backed proposed changes to the capital gains tax (CGT) discount for property investors. His comments come as policymakers, economists, and business leaders continue to examine ways to improve housing affordability and increase supply across the country.
Speaking on the ABC’s 7.30 program, Mr Comyn confirmed his support for adjusting the current CGT discount system. He suggested that reducing or modifying the tax concession could help address imbalances in the housing market, particularly where investor demand has contributed to rising property prices.
The proposal has become one of the most discussed economic reforms in Australia. Under the current system, investors who hold assets for more than 12 months receive a 50 per cent discount on capital gains tax when selling those assets. Critics argue that the policy, combined with negative gearing, has encouraged speculative investment in housing and pushed home ownership further out of reach for many Australians.
However, Mr Comyn also stressed that any reforms should include carve-outs or protections for start-ups and innovation-focused investments. He warned that broad changes to CGT without exemptions could discourage investment in emerging businesses and reduce support for entrepreneurship in Australia’s economy.
The comments place Commonwealth Bank among the most influential corporate voices supporting reform. As Australia’s largest home lender, the bank’s position is likely to carry significant weight in the ongoing national discussion about housing affordability and taxation policy.
At the same time, former Liberal Treasurer Joe Hockey offered a different perspective. While Mr Hockey said he supported the Albanese Government’s move to remove negative gearing benefits for existing properties, he described changes to the capital gains tax discount as “a mistake.” According to him, altering CGT settings could have unintended economic consequences and potentially discourage long-term investment.
The debate highlights growing divisions over how Australia should tackle its housing crisis. Supporters of reform believe changes to investor tax incentives could make housing more accessible for first-home buyers. Opponents argue that major tax changes may reduce investment activity and place pressure on housing supply.
With housing affordability remaining a key political and economic issue, the government is expected to face increasing pressure to balance investor confidence with the need for meaningful reform.
