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The Guardian - AU
The Guardian - AU
National
Jonathan Barrett and Tom McIlroy

Budget capital gains tax changes and negative gearing reform explained

New houses line the streets of an outer suburb, seen from the air, in Melbourne
Australia federal budget 2026: housing is at the centre of Labor’s CGT and negative gearing changes. Photograph: Jesse Thompson/Getty Images

The treasurer, Jim Chalmers, says Tuesday’s federal budget includes “the most significant tax reform package in more than a quarter of a century”.

With changes to negative gearing, the capital gains tax discount (CGT) and tax treatment for trusts, Labor says the plan will rebalance the system, away from taxing incomes and more towards taxing assets.

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