Australian Government Changes Housing Tax Rules in Budget

The Albanese government introduced changes to capital gains tax in the 2026 federal budget after previously stating it would not alter negative gearing or capital gains tax rules. The budget has received lower support in Newspoll surveys than the 2014 Abbott-Hockey budget and ranks near the 1993 Keating budget in public approval.

Amplify, a policy group that uses citizen juries, reported that trust declined after the government reversed its pre-election position. The organization surveyed 18,000 Australians over two years and found broad support for reducing negative gearing and the capital gains tax discount to address housing access.

Research conducted for the Centre for Independent Studies examined the values of 18- to 34-year-olds. The study found that 66 percent of respondents expressed concern about paying higher taxes in the future and that most prioritized financial security.

A 21-year-old apprentice interviewed in Parramatta said he wanted to earn more money and preferred a flat tax rate rather than higher rates for higher earners. Focus groups conducted by Redbridge Group in marginal Labor seats showed that many participants from migrant backgrounds rejected messaging that framed tax changes as addressing intergenerational inequality.

Minister Katy Gallagher discussed the measures in an interview with ABC 7.30. By the end of the week, some ministers indicated openness to revisiting the capital gains tax changes. Resolve pollster Jim Reed stated that the government took a political risk but that further explanation would be required for the measures to gain support.