A former Treasury insider has challenged the Albanese government’s approach to capital gains tax (CGT), arguing that the department selectively uses OECD research to suggest that replacing the 50% CGT discount with an inflation-indexed model won’t deter productive investment or risk-taking.

Treasury secretary Jenny Wilkinson has defended the budget, pushing back against business and investor criticisms that the change would impede investment.

The debate centres on whether reforming CGT will influence corporate risk appetite and investment decisions, with proponents arguing it modernizes the tax system and critics warning of dampened investment incentives.

The discussion also touches on how government policy uses international research to justify fiscal measures and the potential broader implications for market behaviour and economic growth.