Politics Now Will Labor's budget 'pull up the ladder'?
May 12, 2026
A deep dive into proposed housing tax changes, including negative gearing and capital gains adjustments. They flag possible grandfathering and new-home carve-outs and how those moves could reshape who can buy. They also unpack likely trust and minimum tax reforms and the risks those changes pose for small business and political optics.
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Major Housing Tax Changes Start From Budget Night
- Labor will change negative gearing and the 50% capital gains tax discount starting from budget night.
- Grandfathering will likely let existing owners keep old benefits while new rules apply to gains after the budget, shifting incentives for future investors.
Trust Reforms Could Target Tax Gaming
- Trusts are next on Labor's reform list, likely a minimum tax on distributions to limit tax gaming.
- Tom says trusts let high-net-worth people shift income timing and are politically ripe but complex and vulnerable to scare campaigns.
Government Will Quantify New Homeowners To Sell Reform
- The political pitch will quantify how many new homeowners the reforms create to justify taking benefits from investors.
- Tom and Patricia expect messaging like X hundred thousand new homeowners by 2030 to make the trade-off tangible to voters.