Tax Reform Bill Aims to Make Housing Fairer and Cut Big Investor Breaks

Australia’s main parliament passed a new tax bill that will change how profits from property and other investments are taxed. The vote was 94 to 48, with the opposition and a few independents trying but failing to add their own tweaks. The law was announced in last month’s budget and is the biggest tax overhaul seen in years. The new rules will remove a 50‑percent discount that let people pay less tax on gains from assets held for more than a year. Instead, the government will charge a tax that adjusts for inflation. From July 2027, anyone with a net capital gain will pay at least 30 percent of it. The aim is to make the tax system fairer for everyone.One of the bill’s biggest changes targets property investors. The government will limit a practice called negative gearing to only newly built homes. Negative gearing lets investors offset losses from a rental property against their other income, reducing the tax they owe. By restricting it to new houses, the plan hopes to push more money into building fresh homes rather than buying old ones. The bill also gives ordinary workers a small but useful tax break. New taxpayers will receive an instant deduction of A$1, 000 (about US$710) and a tax offset of A$250. These cuts sit on top of other savings already in place, which can bring up to A$536 a year back to people’s pockets. The House has approved the bill, but it now moves to the Senate. The government does not have a majority there, so it will need support from other members to pass the legislation. If approved, the changes could help make housing more affordable and ensure taxes are paid fairly on investment gains.