Treasurer Jim Chalmers has delivered the 2026 federal budget, announcing significant changes to negative gearing, capital gains tax, and discretionary trusts. The government broke its pre-election promise not to alter these tax incentives, with Chalmers justifying the move as a necessary policy shift. The budget aims to address housing affordability and wealth inequality, with first-home buyers among the winners, while wealthier families face tighter rules.
The government projects savings of over $36 billion from cuts to the National Disability Insurance Scheme (NDIS), the largest single saving measure. Smaller deficits are forecast, but critics argue the budget misses opportunities on gas and housing supply. The opposition has pledged to repeal the negative gearing and CGT changes if elected, though it supports a $250 tax cut for workers due next year.
Master Builders Australia criticised the tax changes, warning they could reduce home construction by 35,000 over a decade, despite Treasury estimates. The Centre for Policy Development welcomed the reforms as a step toward addressing intergenerational inequality. Small business software provider MYOB praised the permanent $20,000 instant asset write-off and a two-year loss carry-back measure, calling them practical supports for productivity and investment.
