politics
Australian Budget Changes Target Capital Gains and Trusts
The Australian government introduced changes to capital gains tax discounts and trust taxation in last week’s budget. The measures are projected to raise $2.2 billion by 2029-30. Conservative media outlets have described the changes as a threat to the housing market and as a form of death tax.
May 20, 11:00 AM·1m read1 source
Audio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
The Australian government introduced changes to the capital gains tax discount and negative gearing rules in last week’s budget. 2 billion by 2029-30. 2 billion in 2026-27 across the five largest states. The same report noted that such a decline would require an 80% drop in investor purchases of established homes.
The budget also included measures to limit tax advantages available through testamentary trusts. These trusts are used to divide assets after death and currently allow reduced tax rates on investment income for a small number of beneficiaries. The changes are grandfathered, meaning existing beneficiaries will not see immediate tax increases.
No tax is applied when assets are placed into the trusts.
Australia abolished estate duties in 1977 after Queensland removed them and other states followed. U.S. threshold set at $15 million. U.S. 5 billion. The government has not introduced an estate tax in the current budget.
