Post #2491077

Labor has finally walked away from its promise not to touch negative gearing and capital gains tax. And honestly, good. That “no changes” line during the 2025 election always felt more about protecting investors than fixing housing. The tax system has been rewarding people who already own multiple properties while locking younger Australians and renters out of the market. This budget changes that. Negative gearing will no longer apply to existing homes, while new builds stay exempt. The 50% CGT discount is being scrapped and replaced with an inflation based adjustment. Trusts will also face a 30% minimum tax rate. The government says the changes will raise $8.1 billion over four years, with the money going into a $250 tax offset for 13.3 million workers. Yes, Labor spent years insisting these reforms were off the table. But at least they’ve finally admitted the housing market is distorted by tax policy and decided to do something about it. A progressive government should be willing to upset wealthy investors if it means making life fairer for renters, workers, and first home buyers. Predictably, the usual “tax is theft” crowd will scream blue murder. But shifting the balance away from unearned property wealth and back toward people who actually work for a living is long overdue. #auspol #federalbudget https://www.abc.net.au/news/2026-05-12/federal-budget-2026-tax-break-for-millions-of-workers/106669972