A new poll has dealt a significant blow to the Albanese government, revealing that voters believe the federal budget has damaged trust and left many families worse off. The Freshwater Strategy survey, conducted for the Daily Telegraph, shows a strong backlash against last week's budget, driven largely by Labor's changes to negative gearing, capital gains tax, and trust taxation.
Broken Promises and Declining Trust
According to the poll, 54% of voters said the government had broken its commitment not to alter negative gearing during the last election campaign and should have taken the policy to voters. Overall, 83% said some form of promise had been broken. The fallout appears to have hit confidence in the government hard. Almost half of voters said the changes reduced their trust in the government, with 31% reporting a significant decline and 14% saying trust had fallen slightly. By comparison, just 12% said their trust had increased.
Widespread Dissatisfaction with the Budget
Forty-seven percent of voters say they are dissatisfied with the 2026 federal budget, including 28% who are very dissatisfied. Only 18% say they are satisfied, with just 4% reporting they are very satisfied. Voters also believe the budget will hit their hip pockets. While 44% say it will leave their household worse off, only 13% expect to be better off, underscoring persistent cost-of-living anxiety.
Economic Confidence Weakens
Forty-six percent of voters believe the budget will worsen the economy, compared with just 21% who say it will improve conditions. Notably, 23% expect economic conditions to deteriorate significantly. A strong majority, 58%, believe the budget will increase the likelihood of another interest rate rise, while only 10% think it will reduce that risk.
Housing Tax Changes Fail to Convince
Labor's housing tax changes have also failed to convince voters that they will deliver meaningful reform. More Australians disagree than agree that the adjustments to capital gains tax and negative gearing will improve housing affordability, with 39% rejecting the claim compared with 25% who support it. Adding to the political pressure, 61% of voters expect the government to introduce further tax changes before the next election.
Prime Minister Anthony Albanese has repeatedly refused to say whether he has broken a pre-election promise in the federal budget, insisting instead the government has 'changed our position'. He argued: 'If a young person is going to an auction today, unlike last week, the investor who is bidding against someone who wants to live in that home as their first home won't have the taxpayer by their side subsidising their bids. But these changes will make a difference. They are aimed fairly and squarely at providing additional opportunities for young people to own their own home.'
