Budget 2026 Australia: Jim Chalmers announces capital gains tax and negative gearing reform for housing

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In a significant announcement for the 2026 Australian federal budget, Treasurer Jim Chalmers has proposed major reforms targeting capital gains tax and negative gearing policies. These changes aim to improve housing affordability and restore fairness in the real estate market amid economic challenges.

Labor’s ambitious and politically risky tax reform aims to help first home buyers and foster intergenerational fairness Federal budget 2026 LIVE updates: Australia government budget announcement and speech – latest news Explore all of our 2026 Australia federal budget coverage Get our breaking news email, free app or daily news podcast Jim Chalmers has announced the most ambitious and politically risky tax changes since the Howard era as part of a federal budget that defies the looming economic threat of the Iran war to push Australia along the “hard road to reform”. Arguing that the Australian public is ready for difficult choices aimed at reviving intergenerational fairness and the collapsing dream of home ownership, the government will scale back tax breaks for landlords by abolishing negative gearing for new investors and replacing the 50% capital gains tax discount with the inflation-linked approach that existed before 1999. Continue reading...