Overview
- The budget, due Tuesday night, is widely expected to restrict negative gearing to new builds and replace the 50% capital gains tax discount with inflation indexation from July 2027, with a one-year grace period reported.
- The government will commit $2 billion for water, power, roads and sewerage to unlock about 65,000 homes over the next decade, with extra funding flagged to speed environmental and planning approvals.
- Chalmers says the housing‑tax status quo is “broken” and signals transitional rules for existing investors after Labor previously ruled out these changes before the 2025 election.
- The fiscal stance tightens with an expected $44.9 billion improvement to the bottom line, an upgrade to gas‑project PRRT revenue, and deep NDIS savings of about $35 billion over four years.
- A fuel security package includes a government‑owned reserve and higher mandatory stock levels, while temporary cuts to fuel excise and heavy vehicle charges are budgeted but any extension is unconfirmed.