Will property tax changes make housing cheaper for first home buyers?
Story Summary
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Australian Treasurer Jim Chalmers has delivered what he calls a "reforming" federal budget that breaks decades of political taboo by winding back lucrative property tax concessions for investors. The 2026 budget includes changes to capital gains tax discounts and negative gearing arrangements, marking a dramatic reversal from Prime Minister Anthony Albanese's pre-election promises and Labor's historical reluctance to tackle property tax perks after previous electoral defeats.
The budget extends beyond traditional election-cycle politics, with Chalmers choosing "the hard road of reform" over political expedience. Key measures include an ongoing $250 tax offset for more than 13 million workers and a minimum 30% tax on profits from discretionary trusts from July 2028. Notably, the pre-budget leaks about property tax reforms have generated surprisingly little public outrage compared to Labor's previous attempts at similar policies, suggesting a potential shift in voter sentiment on property investment tax advantages.
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Source Coverage
Will property tax changes make housing cheaper for first home buyers?
There's no doubt that taking away negative gearing on existing properties will reduce the amount many investors can afford to pay, evening up the playing field for owner-occupiers. But these tax changes by themselves aren't a cure all.
Read on ABC AU→Why Chalmers reined in the property tax lurks in the budget
One of the more striking elements from the now well-entrenched program of pre-budget leaks is the lack of outrage from the population or even the opposition.
Read on ABC AU→Negative gearing cut off for existing homes bought after budget night
Tax perks that property investors have used for decades to maximise profits and offset their losses will be restricted from tonight, in one of the most significant changes to the tax system in years.
Read on ABC AU→Chalmers unveils a 'reforming' federal budget in major overhaul of tax system — as it happened
The treasurer unveils a "reforming" federal budget with sweeping changes, including a tax cut for workers. Take a look back at the day's coverage here.
Read on ABC AU→