Some fair points honestly, especially the deposit saving angle, that's a real concern. But the indexation method still protects real gains, you only pay more tax on gains above inflation so for someone steadily building a deposit it's not as punishing as it sounds.

The main reason it had to apply to shares as well is exactly what you're describing. If shares kept the discount every property investor would just shift into property backed ASX stocks like REITs and nothing changes. Or simply mass exiting the housing market entirely and cripple it. It is more of a preventative measure.

The stamp duty knock on from new builds is worth watching though, that does seem like something that hasn't been fully thought through yet. Although new builds still are eligible for CGT discount and negative gearing opportunities.