Grandfathering CGT discount would trigger 'terrible distortions': Ken Henry
What happened
[It can lead to] terrible distortions that put you on a bit of a slippery slope when it comes to policy making. " The Australian Financial Review reported yesterday that the government was currently considering a reduction in the discount to 33 per cent for housing investors, which would not apply retrospectively. This matters for Professional Services & HR because contracting activity changes leverage, market appetite, and which clauses buyers can credibly trade with 33, 1983, 8,000 as the clearest commercial anchors; Rate caps is now more valuable
Buyer takeaway
For Professional Services & HR, the buyer read-through is commercial leverage: scope, validity windows, reopeners, and term structure may now matter as much as headline pricing
Cost / money
The money issue may come through term structure rather than base price alone, especially if suppliers push for escalation language, shorter validity, or broader pass-through
Supplier / commercial
This is primarily a contracting story: revisit scope boundaries, extension mechanics, and which party carries volatility before those assumptions harden in a live tender
Safety / operations
The main operations question is whether the contract still matches field reality. If scope, response times, or liabilities are vague, the risk usually shows up during execution
What to watch
Watch scope creep, liability pushback, and term changes that move volatility back onto the buyer even if the base rate looks manageable
Key facts
- [It can lead to] terrible distortions that put you on a bit of a slippery slope when it comes
- " The Australian Financial Review reported yesterday that the government was currently consid
- Superannuation entered the Australian taxation system in the mid-1980s and by the late 1980s
- "There were changes and further refinements of policy and at every step along the way the arr
