Overview
- Chalmers and Finance Minister Katy Gallagher on Friday detailed $64 billion in savings and a productivity package that trims red tape and speeds skills checks for migrant tradespeople.
- The budget is expected to wind back tax breaks for property investors by tightening negative gearing and reducing the capital gains tax discount, with design details yet to be released.
- The ABC reports the changes are likely to be fully grandfathered for existing negatively geared properties and only partly grandfathered for the capital gains tax discount.
- Negative gearing lets investors deduct rental losses from other income, while the CGT discount halves tax on long‑held asset gains, so curbs would make rentals a less generous investment.
- Modelling for property groups points to fewer new homes and rents 2.4% higher by 2029–30, though several economists expect only modest effects compared with the recent interest rate rises.