Budget 2026 Australia: Jim Chalmers announces capital gains tax and negative gearing reform for housing
Summary
Australia’s Treasurer Jim Chalmers has introduced major changes to property taxes, including ending negative gearing for new investors and altering capital gains tax to a system adjusted for inflation. The 2026 budget also plans large savings from changes to the national disability insurance scheme and delayed tax relief for workers, aiming to improve fairness and support home ownership despite economic challenges.Key Facts
- Negative gearing tax breaks will be abolished for new property investors.
- The 50% capital gains tax discount will be replaced with a method that accounts for inflation, like before 1999.
- These changes are expected to help 75,000 Australians buy homes over the next decade.
- The national disability insurance scheme will be cut to save $36.2 billion over four years.
- More than 13 million workers will receive a $250 tax offset starting in 2027-28.
- A $1,000 instant tax deduction will benefit 6.2 million people in 2026-27.
- The budget includes a $2.6 billion fund for a temporary 26-cent cut in fuel taxes.
- The federal budget still plans deficits over the next few years but aims for a surplus within ten years.
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