Australia's Albanese government rolls out cost‑of‑living package and tax reforms

Prime Minister Anthony Albanese defended a suite of budget measures aimed at easing living costs and reforming capital gains tax. The budget replaces the 50 % CGT discount with an inflation‑indexed cost base and a minimum 30 % tax on gains from July 1, while allowing investors in new‑build housing to retain the 50 % discount. Albanese said, “Everyone has acknowledged during this debate that the housing system is broken. Therefore, we had to do something about it.”

From 1 July, the government introduced tax cuts that will save the average worker about $2,800 a year, extended the $20,000 instant asset write‑off for small businesses, and made six‑month paid parental leave permanent. Minimum‑ wage and award increases cover three million workers. Fuel excise relief was halved to 16 cents per litre until August, and a new mandatory Food and Grocery Code bans supermarket price gouging. Additional funding includes $25 billion for public hospitals, a permanent Medicare Urgent Care program, and the creation of a National Environmental Protection Agency and a Veteran Wellbeing Agency. Opposition figures warned the measures could fuel inflation, with Shadow Treasurer Tim Wilson saying the Treasury “keeps pouring debt petrol on the inflation fire.”