Australia Overhauls Property Tax: Capital Gains Discount Scrapped

Australia Introduces Bill to Overhaul Property Tax Breaks and Capital Gains Rules

The Australian government has introduced a bill in parliament to make the biggest tax rule changes in decades, aiming to boost housing affordability. The reforms include scrapping the 50% capital gains discount for assets held over a year and taxing inflation-adjusted gains instead.

Negative Gearing Limited to New Homes

Under the proposals, negative gearing will be restricted to newly built homes, directing capital toward new housing supply. A 30% minimum tax on net capital gains will take effect from July 2027. The changes are designed to level the playing field for first-home buyers.

Government Defends Reforms Amid Criticism

Prime Minister Anthony Albanese defends the changes as fairer for young people, despite breaking a 2025 election promise not to alter housing taxes. The opposition accuses the government of breaking pledges. The bill must pass the Senate where the government lacks a majority.