Adam Bandt tempts Albo with a couple of housing treats

There are also very good reasons to tax an increase in the capital value of an asset at a different rate to normal income.

When an asset increases in value some significant proportion of that increase is due to inflation and is therefore not a real increase. So the tax system needs to account for that.

Sometimes the increase is due to the income from the asset increasing, but then that extra income will be taxed. A CGT would represent double taxation as the value of an asset is the discounted value of its future cash flows.

Sometimes it is just a valuation effect, but then there is a risk element which has to be taken into account as valuation effects can go in both directions, as we are seeing in the current stock market.

Charging tax at the taxpayer's full marginal rate on 50% of the capital gains is a reasonable compromise that is simple for the taxpayer and the ATO.

It also encourages investment, and investment is necessary to increase productivity. Without higher productivity higher wages and living standards will also be a mirage, along with affordable rents.