u/wyzard135

Hi all, after going over the proposed federal budget, I can't help but feel getting screwed over in regards to the minimum 30% CGT applied to shares.

I'm all for tax reform by removing negative gearing and CGT discount, but applying a minimum 30% CGT to shares is going a step too far.

This screws over young people way more than it helps them, as investing in shares is one of the most powerful investment vehicle in helping them get ahead. This change penalises diligent young people trying to get ahead by investing in shares. Why can't a simple CGT that is added into the taxable income be done rather than this convoluted 30% minimum CGT?

In an effort to address the property price issue, shares investing is caught in the blast radius.

I'm thinking of writing to my local MP to raise awareness of this concern. This is my first time writing to a MP, so would appreciate any tips from you guys. I'll post a draft tomorrow for everyone here in case they also like to write to their local MP.

EDIT: I have written to my local MP. Here's what I've written. Feel free to use this if you'd like to write to your local MP too.

Dear [MP’s Name],

I am writing to you as a constituent of [Your Suburb/Electorate] to express my strong opposition to the tax measures announced in the 2026-27 Federal Budget, specifically the introduction of a 30% minimum tax floor on capital gains that is applied to shares.

I understand the government's objective to ensure "real" gains are taxed through the return of cost-base indexation and address the issue of housing affordability. While I am supportive of the removal of negative gearing and CGT discounts for a fairer taxation of earnings through capital gains and income, the 30% floor is a regressive measure that unfairly targets low-to-middle income Australians trying to build wealth through shares and ETFs. The proposed 30% minimum tax floor penalises young people for trying to get ahead by being financially savvy, working harder, trying to improve their income levels, and investing their hard-earned savings into shares and ETFs.

Under the current system, an investor in a low tax bracket benefits from a system that reflects their actual income level. By mandating a 30% floor, the government is effectively imposing a flat tax that ignores the progressive nature of the Australian tax system.

I am a young middle-income constituent with no investment property, and I am the kind of person this policy is supposedly designed to help; working hard and trying to stay financially responsible, trying to build wealth through shares and ETFs. The reform hits people like me the hardest. It raises the cost of the one wealth building option still available to me while getting locked out of the property market.

I urge you to raise these concerns within the party room and advocate for the removal 30% floor, and tax capital gains fairly as income.

I look forward to hearing your position on this matter and how you intend to represent the interests of your constituents during the upcoming legislative debate.

Yours sincerely,

[Your Name][Your Address]