The latest changes and updates on housing tax reform, as reported by Momentum Media's mortgages, accounting and property titles.
25 June
Chalmers says take reform bill 'a victory for workers, first home buyers and future generations'
Treasurer Jim Chalmers has commented on the passage of the tax reform bills, calling it a "victory for workers, first home buyers and future generations".
The Bill includes the changes to negative gearing and capital gains tax, plus tax cuts in the form of the Working Australians Tax Offset and the instant tax deduction for workers. It also included an increase to the eligible turnover threshold for the 50 per cent active asset CGT concession from $2 million to $10 million, so that all 2.7 million active small businesses and 98 per cent of all active businesses will be eligible for CGT concessions.
"The Bill that has passed today will help ensure aspiration and opportunity are the birthright of every Australian, not just some.
"Today we have locked in two more rounds of income tax cuts for millions of Australians, a fair go for first home buyers, and a fairer tax system that better aligns the treatment of labour and asset income."
He continued: "The Bill reforms future negative gearing so that it only applies to new builds from 1 July 2027, with generous grandfathering provisions for anyone who currently owns an investment property.
"This is all about encouraging investment in new housing supply while also respecting the previous investment decisions people have made.
"The Bill fixes a big distortion that was created in our economy over 25 years ago by returning the capital gains tax to its original intent from 1 July 2027.
"The old intersection between the tax system and the housing market helped make housing unaffordable and coincided with decades of low productivity growth.
"We are taking action because doing nothing would have consigned another generation to that broken status quo and locked them out of the housing market."
He concluded: "Today is a really important day for economic reform, for tax reform, for our economy and our country and it’s a very good day for workers and first home buyers in particular."
Chalmers said the government will "continue to implement the next steps and further tranches of legislation as we roll out our full tax reform package in the months ahead".
Housing tax legislation passes both houses
The housing tax reforms on negative gearing and capital gains tax have officially passed both houses, with the lower house voting 98 votes in favour, with 39 votes against.
The Treasury Laws Amendment Tax Reform No.1 Bill 2026 and Income Tax Rates Amendment (Tax Reform No.1) Bill 2026 were passed by both houses, after the Albanese government and the Greens struck a deal to facilitate the passage of the reforms earlier this week.
The bill, Treasury Laws Amendment Tax Reform No.1 Bill 2026, was passed with amendments in the Senate today and returned to the lower house, with the amendments agreed to by the House of Representatives this afternoon.
The agreement between Labor and the Greens was labelled a “dirty deal” by the opposition, with senator Slade Brockman labelling the CGT reforms “a retrograde step” for Australia's taxation system that would generate significant uncertainty for businesses.
The legislation replaces the 50 per cent CGT discount for individuals, trusts and partnerships with cost base indexation and introduces a minimum 30 per cent tax on capital gains with certain exemptions.
Read more here.
'Certainty now critical': MFAA
The Mortgage & Finance Association of Australia (MFAA) has said its priority is ensuring mortgage and finance brokers have the clarity and certainty they need to continue supporting borrowers, investors and small business owners through the transition.
Throughout the legislative process, the MFAA advocated on behalf of its members and the clients they support, including lodging a submission to the Senate inquiry, supporting COSBOA's Fair Go campaign and raising concerns about the proposed changes to capital gains tax, discretionary trust taxation and the decision to prohibit new limited recourse borrowing arrangements (LRBAs) for residential property within self-managed super funds (SMSFs).
The MFAA's executive of policy, Naveen Ahluwalia, said certainty and clear implementation would be critical.
Read the full MFAA statement here.
Negative gearing, CGT reforms pass Senate
The housing tax reforms on negative gearing and capital gains tax have officially passed the Senate, with the changes one step closer to becoming law.
On Thursday (25 June), the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 officially passed the Senate, after being agreed to following debate in the upper house.
The Greens joined the government in the Senate to block the Coalition’s attempt to delay a vote on the changes, with the bill now set to go back to the House of Representatives on Thursday for a final vote to pass the legislation in its amended form before it becomes law.
Read more on this story here.
Senate committee of the whole debate taking place
The Senate is conducting a Committee of the whole debate today on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 today - which includes the housing tax reforms on negative gearing and capital gains tax.
This will debate whether amendments to the bill should be passed - and whether the bill can finally pass both houses.
A parliamentary procedure where the entire membership of the Senate transforms into a single, less formal committee to discuss legislation or other complex issues in extreme detail. It meets in the main Senate chamber.
Because the Senate operates as a "committee" during this time, its usual strict rules of debate are relaxed to allow for a more open, collaborative exchange of views before a final law or resolution is passed.
Lenders unite to condemn SMSF resi borrowing ban
Australia’s non-bank lenders have blasted the Albanese government’s decision to outlaw new SMSF borrowing for residential property - warning that the ban will damage retirement outcomes, distort competition and sow chaos in live deals.
The backlash follows the federal government’s agreement with the Greens to prohibit future limited recourse borrowing arrangements (LRBAs) by SMSFs for residential property as part of a deal to secure support for its tax overhaul in the Senate.
More on this story here.
SMSF resi ban ‘a grenade’, warn brokers
Brokers have said the ban on new residential borrowing has significantly impacted pipelines, unsettled trustees, and raised fresh questions about who benefits from the reform.
The government’s decision – struck with the Greens – to prohibit future limited recourse borrowing arrangements (LRBAs) for residential property inside self‑managed super funds has drawn sharp responses from brokers who have said that the change will hit ordinary investors hardest.
Read the full story here
Death, divorce to void CGT, negative gearing exemptions for jointly-owned properties
Grandfathering exemptions to the federal government’s new tax reforms could vanish for investment properties jointly owned by couples, if the pair divorces or one person dies.
A detail in the government’s new tax reforms will see investment properties jointly owned by couples lose grandfathering exemptions from capital gains tax (CGT) and negative gearing if they divorce or one person dies.
However, this week, independent Senator David Pocock expressed his fears about the “unintended consequences" of the tax changes in a statement.
More on this story here
Property market thrown into chaos ahead of SMSF ban
The recent SMSF lending changes could have negative consequences across the property sector, with buyer’s agencies caught in the crossfire.
The property industry has been left in chaos following the government’s decision to abolish Australians’ ability to purchase residential property through self-managed super funds (SMSFs).
While the proposed changes have been touted as a boost for first-time buyers to enter the market, many across the industry felt the decision would have far-reaching consequences for the sector.
Read more on this here
24 June
Broking industry lashes SMSF property borrowing ban
Industry associations and brokers have criticised the federal government’s move to outlaw new SMSF residential borrowing arrangements.
The mortgage and finance broking industry has condemned the federal government’s decision to ban new SMSF residential borrowing, saying that the decision will choke off investment, shrink credit availability, and deepen structural wealth divides.
The criticism follows the Albanese government’s agreement with the Greens to prohibit new limited recourse borrowing arrangements (LRBAs) by super funds for residential property, a concession that secured the minor party’ support for Labor’s capital gains tax and negative gearing overhaul in the Senate.
Read all about it here
Investors warned against ‘knee-jerk’ portfolio reaction
Investors have been encouraged to remain firm in their portfolio management strategy rather than react impulsively to government policy changes.
Right Property Group managing director Victor Kumar said the market’s fear-based reaction to the federal government’s proposed tax changes could cause more damage than the reforms themselves, pushing rents higher nationally.
Kumar said that panic was clouding investors’ judgment across the country at a time when strategic thinking mattered most.
Get the full story here.
23 June
Government agrees to ban future LRBAs for resi
The government has agreed to prohibit new SMSF residential borrowing after striking a deal with the Greens to pass its tax overhaul.
The Albanese government has clinched a deal with the Greens to ban new limited recourse borrowing arrangements for residential property inside self‑managed super funds, clearing the way for its wider investor tax overhaul to pass the Senate.
The Greens said they had convinced the government to close off a route they said could have allowed high‑net‑worth investors to sidestep the broader changes to property tax breaks.
More on this story here.
19 June
Details of new CGT discount for start-ups revealed
Treasury has released a consultation paper setting out the Innovative Business CGT Concession (IBCC) – a discount designed to preserve the existing 50 per cent CGT relief for genuine start‑ups, even as the broader regime shifts to indexation and a 30 per cent minimum tax from mid‑2027.
The paper made clear at the outset that the IBCC was intended to stop the wider CGT changes from penalising high‑risk, early‑stage ventures with very low cost bases.
Read the full analysis of the consultation paper here.
12 June
Inquiry lays bare housing crisis as tax reform bill reaches Senate
A Greens‑initiated inquiry into intergenerational housing inequality has heard bleak evidence on rents, prices, and social housing shortfalls, while the Albanese government’s capital gains tax (CGT) and negative gearing changes head to a tight Senate timetable and come under fire from major business groups.
At a public hearing held in Brisbane on Wednesday (10 June), the Greens‑led Senate inquiry heard from tenants, advocates, and service providers about how the current state of the housing market was impacting people’s lives.
The minor party said the evidence painted a picture of households pushed to their limits by rapid price growth, with families adjusting their spending, shelving life plans, and in some cases, sliding into homelessness as costs outpace incomes.
Read the full details of the inquiry here.
8 June
Tax reforms slammed by industry leader in Senate submission
An industry leader has urged the federal government to revise its proposed tax reforms, arguing that a phased implementation or capped passive-loss approach would help minimise disruption and unintended consequences.
In a Senate submission, Momentum Wealth founder Damian Collins said that in their current form, the changes to negative gearing and the capital gains tax discount could have significant ramifications for the nation’s property market.
He said the changes would fail to meaningfully increase housing supply, reduce investment into both residential and commercial real estate, and drive rent values higher.
Read the full details of the submission here.
5 June
CGT and negative gearing changes pass lower house
The first tranche of federal budget measures has passed the lower house, including changes to the treatment of capital gains tax and negative gearing.
Aimed at addressing “intergenerational inequity”, the changes include adjustments to negative gearing arrangements for established homes and reforms to capital gains tax settings, including a shift away from the 50 per cent discount for established dwellings to an inflation-adjusted indexation method alongside a minimum tax rate on net capital gains.
More on this story here.
29 May
CGT and negative gearing overhaul to face Senate inquiry
Treasurer Jim Chalmers tabled Labor’s capital gains and negative gearing overhaul to the lower house, with the bill now being sent to a three-week Senate inquiry.
On 28 May, Chalmers formally introduced the government’s first CGT and negative gearing bill to the House of Representatives, outlining an inflation‑indexed capital gains discount and new restrictions on property tax offsets.
The legislation also bundled in a flat $250 tax cut for wage earners and a $1,000 automatic deduction for work‑related expenses while leaving the detailed treatment of start‑ups, small businesses, and trusts to a second technical bill due to be put forward later this year.
Read the full story here.
25 May
Albanese locks in CGT, negative gearing bill date
Prime Minister Anthony Albanese has said the first bill to implement Labor’s capital gains tax (CGT) and negative gearing changes announced in the 2026–27 federal budget will be introduced to the House of Representatives on 28 May, alongside key personal tax measures – ahead of a second, more detailed tranche later in the year.
Speaking at a press conference on 25 May, Albanese said the initial legislation would contain the headline reforms to the CGT discount and negative gearing, plus the new $250 Working Australian Tax Offset and the standard $1,000 tax deduction option.
Get the full analysis here.
12 May
Government to reform housing tax
The federal government has confirmed it will overhaul the tax system and bring in more initiatives to shake up the status quo in the housing market and enable young home buyers to purchase property.
The federal Treasurer Jim Chalmers MP has handed down the Albanese’s government fifth budget, revealing on Tuesday evening (12 May) a sweeping tax reform package aimed at addressing “intergenerational inequity”, including removing negative gearing for established homes from 1 July (existing property owners can continue to negatively gear properties acquired before 7:30pm AEST on 12 May 2026), and replacing the 50 per cent capital gains tax discount for established dwellings with an inflation-adjusted indexation method from 1 July 2027 (with a 30 per cent minimum tax on net capital gains).
This comes as home ownership rates have declined over recent decades, especially for younger Australians.
Read the full Budget housing details here
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