Key takeaways
Anthony Albanese built substantial wealth by doing exactly what millions of Australians aspire to do: buying property, holding it long term, and benefiting from strong capital growth, all under the current tax system.
Much of Albanese’s gains were cushioned by the 50% capital gains tax discount, a concession that’s now being targeted for reform by unions, the Greens and others arguing it worsens affordability.
Cutting the CGT discount or replacing it with inflation indexation would increase taxable gains, potentially push investors into higher tax brackets, and change the economics of selling — with flow-on effects for rental supply.
The narrative focuses on speculation, but most successful investors don’t flip properties. They buy scarce, high-quality assets, hold through multiple cycles, and let time and compounding drive returns.
Sophisticated investors minimise CGT exposure by holding assets, leveraging equity to grow portfolios, and using smart structures like trusts — aiming not to cash out, but to build and pass on intergenerational wealth.
Anthony Albanese has done what many Australians dream of doing.
He bought property. He held it. He watched it grow in value.
And then he sold down investment properties and locked in some very healthy profits.
So far it’s practically the Australian dream, but here’s where the story gets interesting…
Much of that profit was made under the very same tax rules that are now being targeted for reform - particularly the capital gains tax discount that property investors rely on.
And while everyday investors are being told they’re part of the affordability problem, the Prime Minister has quietly proven something Australians already know deep down:
Property is still one of the fastest ways to build wealth in this country… especially when the tax system gives you a helping hand.
Now the question is: Is the government about to change the rules after the Prime Minister has already benefited from them?
A realestate.com.au piece recently highlighted that Albanese has sold a string of investment properties for quite some profit in recent years.
For example, his Dulwich Hill townhouse in Sydney’s inner west was sold in late 2024 for around $1.75 million - roughly $575,000 more than he paid back in 2015, and that profit would have qualified for the 50 per cent CGT discount now under scrutiny.
Earlier sales include a Marrickville rental that nearly doubled in value and a Canberra apartment that was sold for about four times its purchase price.
And while he still owns property, including his former Marrickville residence and a clifftop home at Copacabana, which he says will be his long-term home, much of his recent gains would be cushioned under current CGT rules.
The irony is that those same CGT perks that helped soften the tax blow on his own profits are now squarely in the political spotlight.
There’s growing pressure from across the political spectrum, including unions and minor parties like the Greens, to slash the CGT discount from 50 per cent to something closer to 25 per cent, or to rethink how property gains are taxed entirely.
Advocates argue the current regime fuels speculation and pushes up prices, making life harder for first-timer property buyers.
Critics, on the other hand, warn that tinkering with CGT could spook investors, further shrink rental supply and even deepen Australia’s rental crisis.
It’s worth unpacking how big this concession really is
Right now, if you hold an investment property (or any other asset for that matter) for more than a year and sell it for a profit, half of that gain is simply ignored for tax purposes.
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That doesn’t mean you pay no tax at all. The gain is still added to your income for the year you sell, but you effectively pay tax on only 50 per cent of the real uplift.
For most property investors, particularly those who have held assets through multiple market cycles, that can make the difference between a windfall and a respectable, but taxed, return.
And it’s exactly that kind of outcome Albanese has benefited from personally.
Now imagine a change where that cushion is halved or replaced by an indexation system that only compensates for inflation.
That increases taxable income, potentially pushing it into higher tax brackets, and can immediately change the economics of selling a long-held investment.
The Treasurer has signalled discussions about “intergenerational equity” and the need to address housing affordability, but the government insists its priority remains boosting supply, not layering on new taxes, at least for now.
What does this mean for you as a property investor?
That said, strategic long-term investors shouldn’t get too rattled by all this talk of changing the capital gains tax.
After all, the best property investors don’t build wealth by buying and selling.
They build it by buying high-quality assets, holding them through multiple cycles, and letting time and compounding do the heavy lifting.
Most successful investors aren’t in the business of flipping properties for quick profits. They’re in the business of accumulating scarce, investment-grade assets and keeping them.
In fact, most sophisticated investors rarely sell at all.
Instead, they use the equity in their properties to keep expanding their portfolio, and they structure their affairs so they can eventually pass their wealth to the next generation.
With the right ownership structures, such as trusts or other carefully planned arrangements, investors can protect their assets, enhance flexibility, and potentially reduce the risk of triggering major tax events.
In other words, capital gains tax only becomes a real problem if your strategy relies on selling.
And for investors playing the long game, the real goal isn’t to cash out - it’s to build and hold a portfolio that becomes the foundation of intergenerational wealth.
