As we have been warning, it is becoming clear that the Australian government is positioning to introduce an inheritance tax among other measures to reshape how private wealth is taxed.
On 7 December 2025, Deloitte Access Economics released a major report arguing that Australia’s tax system cannot sustain rising national debt and structural deficits without significant reform.
The report outlines a five-point plan that would amount to the most substantial tax shift in decades.
1. Inheritance taxReport spin: A 10% tax on estates over $100,000 will “reduce intergenerational inequality” and ensure wealthier families contribute more.
Reality for everyday Australians: A $100,000 threshold captures ordinary families, not just the wealthy. A small home, a modest investment account, or even super death benefits can trigger this tax. This is not targeted at the ultra-rich — it is targeted at middle Australia, where most intergenerational wealth sits.
2. Higher and broader GST
Report spin: Raising GST to 15% and applying it to food and education will “strengthen the revenue base” and create long-term budget stability.
Reality for everyday Australians: This is a cost-of-living tax. Food, schooling, and everyday essentials would all become more expensive. GST is regressive — lower and middle-income families feel the pain first and hardest. Extending GST to basics shifts more of the tax burden onto consumption and off high-value assets.
3. Personal income tax overhaul
Report spin: Lifting the tax-free threshold and simplifying brackets will “reduce reliance on wage earners” and make the system fairer.
Reality for everyday Australians: The headline sounds good, but the detail matters. If GST rises while CGT concessions shrink and inheritance tax arrives, workers may still end up paying more overall, not less. A higher threshold can be cancelled out by higher prices, broader taxes, and reductions elsewhere.
4. Lower company tax — with a super-profits surcharge
Report spin: Cutting corporate tax to 20% will “boost competitiveness” and attract investment, while a super-profits tax ensures fairness.
Reality for everyday Australians: Large corporations benefit immediately. Everyday Australians do not. Small businesses may not see any relief, while everyday consumers face higher GST and new wealth taxes. Meanwhile, “super-profits” is a subjective political term — and surcharges tend to creep once established.
5. Reduced capital gains tax discount
Report spin: Cutting the CGT discount from 50% to 33% will “improve equity” between wage earners and investors.
Reality for everyday Australians: This affects mum-and-dad investors, including those relying on rental property, share portfolios, and retirement planning. It reduces long-term returns and makes restructures, downsizing, or selling assets more expensive. Those with structured wealth (trusts, companies, advisers) can adapt; ordinary families simply pay more tax.
Deloitte has not yet released a full public PDF of its report.
Tax changes rarely move backwards once introduced. If your asset protection, SMSF structure or estate planning haven’t been reviewed recently, now is the right time.
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