Australia Unveils Changes to Negative Gearing, Capital Gains Tax
The overhaul targets investor demand and aims to help 75,000 more Australians buy a first home, Treasury said.
- On Tuesday, May 12, 2026, Treasurer Jim Chalmers presented the 2026-27 federal budget, describing it as the "most important and ambitious" in decades amid global economic pressures.
- Chalmers moved to rebalance an "out of whack" system, citing house prices that rose over 400 per cent since 1999, far outpacing average income growth and locking younger Australians from homeownership.
- The package includes a new $250 Working Australians Tax Offset and a $1000 instant deduction, measures the government says will leave the average worker up to $2816 better off by 2028.
- From July 2027, negative gearing restricts to new builds while capital gains tax reverts to inflation indexing, reforms the government claims will help 75,000 Australians buy first homes over the next decade.
- To fund these measures, the government targets $37.8 billion in NDIS savings and $53 billion in defense spending over 10 years, with the budget forecasting a return to surplus by 2034.
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The Biggest Winners and Losers From Australia’s Budget
As Australians grapple with higher inflation and other flow-on effects from the war in Iran, the government unveiled its 2026-27 budget, seeking to tackle generational inequality, while shoring up the country’s fuel supplies and defenses. Here’s a breakdown of the winners and losers in Treasurer Jim Chalmers’ fiscal blueprint.
At a glance: budget 2026
The federal budget takes some big swings, with reforms to capital gains tax and negative gearing. There are also major spends on health, fuel and infrastructure. This has meant some risky moves in the face of global uncertainty, including the ongoing conflict in the Middle East and the price of oil coming down soon. Key details Read the full analysis from our experts: Digital Storytelling Team does not work for, consult, own shares in or receive…
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