Australia's budget fuels debate over tax and welfare reforms

The Albanese government has introduced a package of tax reforms that would restrict negative gearing to newly built homes from 2027‑28 and replace the 50 percent capital gains tax discount with inflation‑adjusted indexation. Finance Minister Katy Gallagher defended the changes, saying they aim to help younger Australians and cited recent auction results that gave first‑home buyers a better chance.

Opposition Liberal Senator Dave Sharma responded with a proposal to limit 17 Commonwealth welfare payments – including Jobseeker and Family Tax Benefit – to Australian citizens for new arrivals after 1 July 2028. He emphasized that current permanent residents would not be affected and argued the plan would protect the social safety net while reducing the federal deficit and allowing broader tax relief.

Both sides framed the measures as responses to rising living costs, higher taxes and a $150 billion deficit, with the government seeking to explain the reforms and the opposition urging fiscal discipline to safeguard families.