Only applying changes to the CGT discount and negative gearing rules to new investments would “severely delay” desperately needed reforms required to repair a “structurally flawed” budget and boost the economy, Deloitte says. The consulting firm estimated that a policy which cut the 50% capital gains tax discount to 33% and abolished negative gearing would only generate $500m over the first four years of operation if existing investments were not included – an approach known as “grandfathering”. Phasing in the new tax settings for all existing investors over three years, in contrast, would boost the budget by a substantially larger $18.8bn over the first four years - money which Stephen Smith, a lead partner at Deloitte Access Economics, said could be used to pay for income tax cuts for Australian workers. The additional revenue could, for example, fund a 1 percentage point cut to the lowest marginal tax rate that would give an additional $500 back to a worker earning $45,000 a year.…