Coalition vows to repeal Labor’s ‘toxic’ negative gearing and capital gains tax budget reforms
Summary
The Coalition parties have promised to undo Labor’s new tax rules on negative gearing and capital gains if they win the next election. These changes, announced in the recent budget, will limit tax benefits for property investors and are planned to take full effect by 2027. Labor’s proposal aims to raise revenue, but the Coalition says it will fight the changes in parliament.Key Facts
- Labor’s budget includes ending negative gearing for new investment properties bought after the budget announcement.
- The 50% discount on capital gains tax (CGT) will be phased out by July 1, 2027.
- The Coalition has pledged to repeal these changes if they regain government, promising to restore more generous tax rules for property investors.
- Repealing the tax changes would reduce budget revenue by about $70 billion, needing other savings or revenue to cover the gap.
- Labor introduced a $250 tax offset for workers but excluded welfare recipients below the tax-free income level from receiving it.
- The Greens want more details from Labor before supporting the tax reforms and suggest the changes do not go far enough.
- Prime Minister Anthony Albanese said the worker tax offset targets people who pay tax, not those below the tax-free threshold.
- The next federal election is due by mid-2028, around the time the tax changes will take full effect.
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