Sarah Ferguson confronted Treasurer Jim Chalmers over Labor's broken election promises during a heated post-Budget interview on ABC's 7.30 program. Chalmers had just announced the 2026 Federal Budget at 7.30pm on Tuesday, which included major changes to negative gearing and capital gains tax (CGT).
Budget Changes
The government will abolish negative gearing for existing properties, except for newly built ones, and replace the current 50 per cent CGT discount with inflation-adjusted indexation. At the last federal election in 2025, Labor had pledged not to alter either system, which benefit property investors.
Chalmers' Defence
During the interview, Chalmers defended the changes as necessary to help young Australians buy their first home. 'I acknowledge that the government's come to a different view about some really important policy areas,' he said. 'The comments and commitments we made at the election reflected the government's almost singular focus on housing supply, we're maintaining that focus on supply. But the challenge begins there, it doesn't end there with supply.'
Chalmers added that the current 'interaction of the housing market and the tax system is locking too many Australians, particularly young Australians, out'.
Ferguson's Cross-Examination
However, Ferguson was more focused on why Labor had backtracked on its stance just 12 months after being voted in. 'No acknowledgement of broken promises, despite the fact that they are blindingly obvious to everybody watching,' she told Chalmers. 'Breaking ironclad election promises so blatantly, you must have spent a long time calculating the consequences.'
Chalmers brushed aside the broken promises accusation and defended Labor's decision as necessary for first-time home owners. 'We are aware that people who want to defend the current tax arrangements, or they think that the current housing market is working just fine, they will want to focus on the political element of it,' he said. 'We're focused on the substantive issue, the substantive change. We've come to a different view on these policy areas, we're explaining to the Australian people why.'
The pair went back and forth on whether the Budget would actually help young Australians and renters before Ferguson delivered a final point. 'Do you accept that even if these changes are very well received amongst young voters, no one will believe a promise from this government ever again?' she asked Chalmers.
The Treasurer shot back: 'I'm not sure about that. I think that the most important thing is if we come to a different view, we explain why. I've taken responsibility for the fact that the government has a different view now than it had 12 months ago. Let's not lose sight of the actual issue that we are addressing here. The easiest thing in the world would have been for me to sit here and rationalise to you why we hadn't made any of these changes - that would have been so much easier than explaining why we have. But it wouldn't have been the right outcome for 75,000 Australians who would stay locked out of the housing market.'
