A Proactive Approach to Wealth Inequality: COTA - Capital Ownership Transition Account: 10/10-3

This policy paper proposes the Capital Ownership Transition Account (COTA), a 10/10-3 framework designed to broaden productive-capital ownership among citizens entering the workforce. In the illustrative Australian design, a temporary income-tax-linked concession directs up to 10% of an eligible participant’s individual income-tax liability, subject to an indexed annual cap, into a privately owned diversified investment account during the first ten qualifying contribution years. After the initial ten-year period, contribution responsibility progressively transfers from government to the participant over three years. Annual investment tranches mature on a rolling basis, and eligible capital may later support a qualifying first-home purchase while the account remains available throughout working life. The paper considers eligibility, ownership, investment design, modelling, access and life events, delivery, governance, fiscal sustainability and safeguards. Illustrative adaptations for the United States, Germany and Türkiye test how the funding formula, contribution timing and investment design may change across different economic environments while preserving COTA’s underlying principle: using labour-market participation as an entry point into early private capital ownership. The proposed rates, fiscal estimates and international applications are illustrative and would require independent fiscal, legal, tax and investment analysis before implementation. The accompanying workbooks provide the audited 2026 baseline, the 10/10-3 candidate revision audit and the superannuation comparison used in the paper. Rhys J Pich originally developed and proposed the Capital Ownership Transition Account (COTA) framework.