Australian Treasurer Jim Chalmers' Budget Tax Reforms Target Property Market

Treasurer Jim Chalmers has introduced a new capital gains tax regime that imposes a 30 % minimum rate on asset disposals and removes the 50 % discount for investors, while also ending negative gearing for existing residential properties. The changes are designed to curb demand for investment housing and shift incentives toward new construction.

Early indicators show auction clearance rates have risen to a seven‑week high, but house‑price effects remain uncertain. Analysts warn the reforms could create negative equity for some home‑buyers, especially those using the government’s 5 % Deposit Scheme, and may increase pressure on developers if further cash‑rate hikes occur. The full impact on property values and the broader economy is expected to become clearer around 2028, ahead of the next election.