{"id":665590,"date":"2026-05-12T08:09:10","date_gmt":"2026-05-12T08:09:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/665590\/"},"modified":"2026-05-12T08:09:10","modified_gmt":"2026-05-12T08:09:10","slug":"tax-reform-to-help-75000-buyers-into-first-homes-government-says-ahead-of-federal-budgets-release","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/665590\/","title":{"rendered":"Tax reform to help 75,000 buyers into first homes, government says ahead of federal budget’s release"},"content":{"rendered":"

In a political push to get ahead of criticism that it has broken election promises, Labor is making a case for significant tax reform by promising the budget will open the housing market to younger buyers.\u00a0<\/p>\n

Prime Minister Anthony Albanese has paved the way for changes to negative gearing, capital gains tax and trusts after weeks of rampant speculation, in a slick social media video released by the government just hours before Treasurer Jim Chalmers is due to hand down the federal budget.<\/p>\n

“This is about doing the right thing to help more young Australians buy a home of their own,” Mr Albanese said.\u00a0<\/p>\n

Federal budget live updates<\/a>: For the latest on the 2026 budget, read our blog.<\/p>\n

Government forecasts estimate that negative gearing and capital gains tax reforms would help 75,000 people buy their first home over the next 10 years.\u00a0<\/p>\n

The changes were aimed at “essentially making negative gearing less attractive”, Finance Minister Katy Gallagher told Afternoon Briefing.\u00a0<\/p>\n

“We would see about 75,000 owner occupiers, additional owner occupiers, be able to buy their own home,” she said of the tax changes.<\/p>\n

But the move has opened the door to Coalition calls of broken promises, something Senator Gallagher said would take explaining.\u00a0<\/p>\n

“Governments have to make decisions. If they make those decisions and it’s a different decision to what they’ve made in the past, they have to front up and explain it,” she said.\u00a0<\/p>\n

Loading<\/p>\n

“People will have their view about that.\u00a0<\/p>\n

“I also think that Australians elect you to govern and make decisions in the national interest, and that doesn’t stop and start on election day.”<\/p>\n

Promise ‘completely broken’<\/p>\n

Just a year ago, during the election campaign, Mr Albanese exasperatedly ruled out changing capital gains tax or negative gearing settings. \u00a0<\/p>\n

“Yes, how hard is it, for the 50th time?” Mr Albanese said in response to a question about whether he could rule out the tax changes.<\/p>\n

Shadow Treasurer Tim Wilson has now accused the government of “betraying the Australian people” over the expected backflip.\u00a0<\/p>\n

“The promises he took to the last election, around not changing certain taxes, are now completely broken,” Mr Wilson said.<\/p>\n

“The promises that [the treasurer] and the prime minister made to the Australian people 50 times over, in their own language.”<\/p>\n

Mr Wilson said while he had not seen details of the changes, it would be hard to support tax increases.\u00a0<\/p>\n

Defending the backflip, Mr Albanese this week said the circumstances justified it.\u00a0<\/p>\n

“Another year has passed from the election, and not enough has changed,” he told RN Breakfast yesterday.<\/p>\n

“The difficult decision, but the right decision, is to do the right thing, with the right policies.<\/p>\n

“Any responsible government like ours has to take these issues seriously.”<\/p>\n

Mr Chalmers will reveal tonight how those changes will be made and over what period of time they will happen.<\/p>\n

Boosting housing supply<\/p>\n

Government figures show the average age of a first home buyer has jumped from 27 years in 1981 to 35 years in 2020, with it taking people more than a decade to save for a deposit, as of December.\u00a0<\/p>\n

Since the capital gains tax discount was introduced in 1999, house prices have increased by more than 400 per cent, twice as fast as full-time incomes, the government numbers show.\u00a0<\/p>\n

\"Jim,<\/p>\n

Jim Chalmers (left) has promised his fifth budget will be focused on resilience and reform. (ABC News: Matt Roberts)<\/p>\n

The government has made no secret of its push to increase housing affordability and availability.<\/p>\n

It is already rolling out its National Housing Accord, supporting the construction of 1.2 million homes over five years<\/a>.\u00a0<\/p>\n

Mr Chalmers has promised that, in addition to tax reform, tonight’s budget will increase housing supply.<\/p>\n

Housing and the cost of living will make up one of the five major packages Mr Chalmers has said will be included in tonight’s budget.\u00a0<\/p>\n

Loading Instagram content<\/p>\n

Alongside housing and tax reform, there will be packages designed to target fuel security, productivity and savings.\u00a0<\/p>\n

“Tonight, we’re changing Australia’s tax system to level the playing field for them [young people] and boosting housing supply to level the playing field,” Mr Chalmers said in the social media video.\u00a0<\/p>\n

The 30-second video, designed to be watched on mobile phones, has been aimed directly at people trying to get a foothold in the property market.\u00a0<\/p>\n

“Buying your first home shouldn’t feel impossible,” Mr Albanese said, before giving way to Senator Gallagher for the second line.\u00a0<\/p>\n

“But right now, too many young people feel locked out of the housing market,” she said.<\/p>\n

The social media reel goes on to explain that the new housing measures will build on the existing 5 per cent deposit scheme.<\/p>\n

“We’re building 100,000 homes reserved just for them [young people],” Mr Chalmers said in the video, with the prime minister promising to boost housing supply further.\u00a0<\/p>\n

“Because when you work hard and save \u2026” Mr Chalmer says.<\/p>\n

“\u2026you should have a fair go at owning your own home,” Mr Albanese says, in the video’s final line.<\/p>\n

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