Australia's Labor budget tax reforms trigger opposition from Coalition and One Nation

The Australian Labor government’s budget proposes sweeping tax changes, including a reduction of the capital gains tax discount and limiting negative gearing to newly built homes from 1 July 2027. The plan would keep existing investment properties under the current regime but raise the marginal tax rate on capital gains for many investors.

Coalition spokesman Andrew Hastie called the measures a “poison pill”, accusing Labor of “classic wedge politics” and pledged to oppose the bill, while supporting the Working Australian Tax Offset that gives wage‑earners a $250 rebate. The Coalition says the reforms would increase taxes on investors and harm aspiration.

One Nation leader Pauline Hanson announced support for negative gearing on up to two homes per person, rejecting Labor’s changes and positioning her party between the Coalition’s repeal call and the government’s justification that the reforms aim to boost new housing supply. Hanson’s stance seeks to preserve investor access while limiting the scope of negative gearing.