Canberra’s night of nights has come to a close here at parliament – but best believe Jim Chalmers. his colleagues are celebrating another budget done and dusted and doing some fundraising while they’re at it.
There weren’t many surprises but we finally got the details of Labor’s changes to negative gearing, capital gains tax. discretionary trusts.
The treasurer justified breaking Labor’s promise not to touch those tax incentives at the last election, saying that the thinking in the government had changed in recent weeks,. it was the right policy.
Taxpayers, boffins. first home buyers were among the winners, while wealthier families, freight rail enthusiasts and hopeful migrants were among the losers.
The government will save more than $36bn from cutting the NDIS. by far the biggest chunk of its savings across the budget.
The opposition says it would repeal the negative gearing. CGT changes if elected, but backed the $250 tax cut for workers which will come into effect next year.
Smaller deficits but a missed opportunity on gas: read Greg Jericho ’s take on the budget.
The Greens accused the government of ‘tinkering’ around the edges on the tax policy,. defending wealthy corporations and the 1%.
Key stories from tonight:
Chalmers goes for broke in federal budget facing twin threats of housing pain and Iran war disaster
Capital gains tax changes and negative gearing reform explained
Budget 2026 winner and losers
This bold budget has grasped the nettle of tax. housing – but it may not be enough to move the needle for younger Australians | Tom McIlroy
The budget in seven graphs | Greg Jericho
What the budget means for your generation
Huge cuts to NDIS aim to save more than $36bn
You can read all the Guardian’s coverage of the 2026 federal budget here.
I will see you back here bright and early tomorrow! Take care.
Budget night in pictures
Master builders Australia says tax changes won’t build more houses
Master builders Australia has criticised tax changes to negative gearing. capital gains tax, and said they will decrease the number of homes built in the future.
In the budget, Treasury has speculated the changes could lead to 35,000 less homes being built over a decade.
Chief executive. Denita Wawn welcomed changes to speed up skills assessments for migrant trades workers, saying that construction workers are a key issue amongst supply.
double quotation mark The government’s broken promises on CGT. Negative Gearing dilutes many of the positive features of tonight’s federal budget. The opportunity that exists to turbocharge housing supply has been lost.
Budget a ‘clear shift’ on intergenerational and wealth inequality: CPD
Think tank the Centre for Policy Development says changes to capital gains tax. negative gearing announced in the budget mark a clear shift by Labor toward addressing intergenerational and wealth inequality, as well as prioritising a more resilient economy.
Research director Warwick Smith said:
double quotation mark While the housing affordability crisis is complex—and much more needs to be done—these reforms are a necessary. welcome intervention.
While the housing affordability crisis is complex—and much more needs to be done—these reforms are a necessary and welcome intervention.
MYOB welcomes tax plans for small business in the federal budget
Small business software provider MYOB says the federal government has brought key changes needed for the sector. including making the $20,000 instant asset write-off provisions permanent.
Small business operators and their advocates have been calling for the move for years.
Chief executive Paul Robson said MYOB’s research ahead of Tuesday night showed tax relief was among the top priorities for small business owners.
double quotation mark This is a practical reform that gives small. medium businesses greater certainty to invest in the tools and equipment they need to improve productivity, modernise operations and remain competitive.
We also welcome the announcement of the two-year loss carry back measure. which will provide valuable support for businesses facing fluctuating conditions.
Allowing businesses to offset current losses against previous profits can help small. medium enterprises manage uncertainty, maintain investment and retain staff during more challenging periods.
The 2026 budget winners and losers
There’s plenty to chew on from this budget – despite us having known much of its contents before today.
So who wins and who loses?
My colleagues Sarah Basford Canales and Luca Ittimani have the low down:
The business council of Australia (BCA) has given the thumbs up to the governments productivity. resilience measures in the budget, but they’re not happy about the negative gearing and CGT changes.
Chief executive, Bran Black says he’s also pleased that the government did not introduce a gas export tax.
In a statement, he said that reducing regulatory costs by more than $10bn a year is a “most welcome step”.
double quotation mark The Budget contains welcome resilience announcements. several important reforms long advocated by the BCA to lift business investment and living standards …
We remain concerned about the complexity. net impact of changes to CGT and negative gearing in terms of making Australia a less desirable place for investment, as well as implications for housing supply.
Tim Wilson says the opposition would repeal changes to capital gains tax and negative gearing if elected.
The shadow treasurer is speaking with Sky News,. says the prime minister was “red hot with rage” in the lead up to the election, promising not to touch the incentives.
double quotation mark We’ll repeal these measures if necessary, but our objective is to defeat them. to make sure that they’re never legislated. Because this government doesn’t have licence from the Australian community support these changes.
Wilson also says the $250 tax offset for workers will be eaten up within six months due to inflation. That offset will be given to workers after next year – so it’s still a while away.
double quotation mark These sorts of measures will maybe last six months. Inflation is the problem eating into the household savings.
Ratings agency says budget does little to improve bottom line
S&P Global Ratings says the “ambitious” tax. spending changes in tonight’s budget do little to improve the budget bottom line, despite a $34.5bn boost to tax revenue over five years thanks in large part to higher commodity prices.
As the commonwealth approaches the “politically sensitive” $1 trillion debt threshold. the ratings agency questioned whether the government would be able to plan to slash NDIS spending by nearly $38bn over four years.
This limited spending growth to 2% a year, the S&P analysts noted, “would mark a dramatic turnaround” from the average 24% growth rate between 2020. 2024.
“Fiscal performance is sound at the central-government level,” they noted,. then pointed to big-spending state governments, which could make it harder for the Reserve Bank to bring inflation back under control.
Then there were the extra billions heading into “off budget” items.
double quotation mark Media attention will gravitate toward Canberra’s preferred measure, the ‘underlying’ cash balance.
This metric excludes cash outflows in the form of loans or equity injections into off-budget vehicles such as the Clean Energy Finance. National Reconstruction Fund.
Such expenditure is rising, as industrial policy comes back into vogue, and could average about $24 billion per year.
‘Fallacy’, Joyce doubts home ownership benefit from budget
Barnaby Joyce says that changes to negative gearing and capital gains tax are “destroying the inspiration” Australians.
He’s also speaking to the ABC, and says that the system has historically incentivised and rewarded investment and entrepreneurship.
He also doubts the impact. the tax changes will have on first home buyers being able to enter the market. The government’s figures say that the changes will help get 75,000 Australians into home ownership.
double quotation mark Anyone who starts from nothing. works on the premise one of the great fruits is that late their they sell the business, the entrepreneurship for a substantial capital gain.
As far as you go with houses. this fallacy that there are a range of people out there only renting because they wanted to. [That] they are undercover first home buyers and renting because they wanted to. Now they brought in the change, they will become first home buyers. No they won’t.
Budget changes ‘won’t fix the housing crisis’, Waters
Greens leader Larissa Waters isn’t happy with the budget, accusing the government of favouring wealthy people and corporations.
She tells the ABC that grandfathering the changes “bakes in” existing inequality in the system.
double quotation mark This budget keeps in place of those property investor tax perks, and it does nothing for renters. So this was a real opportunity for the government to actually step up. help people, and instead, they’ve delivered a budget that simply feathers the nest of wealthy corporations and the 1%.
The fact that they’ve grandfathered in the existing unfair tax settings simply means that they’re baking that inequality in.
She says that her party will look at the finer details of the legislation, but laments that the government didn’t take the opportunity to tax corporations more – particularly the gas. resources sector.
Concerns over impact of CGT changes on start ups
Independent MP, Allegra Spender, who’s been a big advocate for tax reform, says she’s supportive of the government’s changes to negative gearing. discretionary trusts.
But she’s worried about the impact. the changes to capital gains tax will have on people investing in start ups.
double quotation mark I do support reducing capital gains tax discounts but there’s some legitimate, genuinely legitimate concerns from particularly founders. early stage ventures who are asking how it might affect those groups?
Earlier on the program. budget guru Chris Richardson says that the change is “rough if you made big bucks with your start-up.”
double quotation mark You don’t want to discourage people from taking risk.
Discussion
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