Housing tax changes spark fresh political showdown

The current Australian government’s housing policies, effective from July 1, 2027, follow significant changes introduced in the 2026 federal budget.

Key alterations include the removal of the 50% Capital Gains Tax discount, implementation of cost-based indexation for capital gains with a 30% minimum tax rate, and the abolition of negative gearing for existing properties purchased post-budget, while new builds remain exempt.

Tim Wilson, Federal Member for Goldstein and Shadow Treasurer, argues that Labor perceives property investors as tax revenue sources, while the Coalition considers them essential for housing stock.

The Opposition plans to repeal the government’s CGT and negative gearing changes if elected and opposes proposed trust tax changes, highlighting navigation challenges within the final legislation.

To address housing supply and affordability, the Opposition will focus on fostering investor confidence, committing $5 billion towards underground utilities and infrastructure for new developments, and reducing inflation to assist potential homeowners.

Wilson claims the government’s forecast of 75,000 new homeowners over the next decade lacks accurate modeling.

He stated that recent tax changes have diminished investor confidence and negatively affected renters by hindering new property supply.

The Opposition emphasises that prioritising home ownership remains crucial for economic stability.