7am Labor’s budget promises fairness – does it deliver?
May 12, 2026
Karen Middleton, press gallery journalist and political commentator, breaks down the budget’s fairness pitch. She walks through changes to negative gearing and capital gains, the grandfathering trade-offs, and the $250 tax offset plus the $1,000 deduction. Migration intake cuts, political calculations and who wins or loses all get sharp, concise attention.
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Negative Gearing Restricted To New Builds
- The budget limits negative gearing to newly built properties, while existing investors keep current rules.
- Jim Chalmers replaces the 50% capital gains discount with an inflation-adjusted system plus a 30% minimum to rebalance tax on assets versus labour.
Transition Preserves Existing Investors
- The transition keeps existing investors' negative gearing intact, creating a phased change rather than retroactive reform.
- The government argues a transitional approach was necessary to avoid upheaval for those already in the market.
Broken Promise Explained As Political Calculation
- Breaking an election promise not to change negative gearing is politically risky but the government cites changed circumstances and its large majority.
- Karen says the government is prioritising calls for immediate action over keeping that specific pledge.