Tax backflip sparks housing debate

Treasurer Jim Chalmers has confirmed major changes to negative gearing and capital gains tax, despite earlier election commitments from the government. The 2026-27 federal budget formalises a dramatic policy shift that could reshape Australia’s property market and tax system. The updated policy will scrap the 50 per cent capital gains tax discount and introduce a minimum tax rate of 30 per cent. Negative gearing will now be restricted to new residential builds, while current landlords will remain exempt under the changes. Supporters say the reforms are designed to ease pressure for workers and first home buyers, but critics warn younger Australians could still face higher barriers to entering the housing market.