The Albanese government has gambled Australians will accept its broken promises on reforms to capital gains tax and negative gearing due to deeply held concerns among voters over inequities in the housing market.
The 2026-27 budget, framed against the backdrop of rising inflation and slowing growth caused by the global energy crisis, confirmed the 50% CGT discount introduced by the Howard government will be removed, with no carveouts for startups or small businesses. The government also abolished negative gearing, except on new dwellings.
In his pre-budget press conference, Treasurer Jim Chalmers framed it as a “budget for first-homebuyers” and a budget for workers, acknowledging the move would expose the government to “scare campaigns and lies” from political opponents.
But he said he is prepared to argue his case because the shift will make it easier for young people to enter the property market.
