Australia's housing tax reforms spark first‑home buyer despair and business backlash

The Australian federal budget introduced reforms to negative gearing and the 50 percent capital gains tax (CGT) discount, slated to take effect on assets purchased from July 2027. The government says the measures will curb investor‑driven demand and improve long‑term housing affordability.

First‑home buyers, such as a Sydney couple featured on 60 Minutes, describe the changes as “almost demoralising”, noting that rising prices and the narrowing of tax concessions make homeownership feel out of reach. Young Australians are increasingly resorting to aggressive savings strategies amid what they see as shifting goalposts.

A coalition of business groups—including the Australian Chamber of Commerce and Industry, the Australian Industry Group, the Business Council of Australia and the Council of Small Business Organisations—has warned that the reforms could deter investment, drag on productivity and reduce Australia’s competitiveness. They argue the bill’s scope goes beyond housing, affecting shares, business stakes and commercial property, and have called for the changes to be confined to new housing only. The Senate committee began hearings, with a report due 22 June, while the government has resisted broader exemptions, maintaining the reforms are needed to address structural inequality in the housing market.