5 June 2026
In our submission to the Senate Economics Legislation Committee Inquiry into the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and related legislation, ACT Shelter urges the Senate to pass the legislation without delay.
We strongly support the Federal Government’s proposed reforms to negative gearing and the Capital Gains Tax (CGT) discount. These reforms, starting 1 July 2027, would include:
- Limiting negative gearing strictly to newly built housing.
- Quarantining losses from established properties to offset only rental income.
- Replacing the 50% CGT discount with inflation indexation and a 30% minimum tax rate on future gains.
- Grandfathering existing investments, applying changes prospectively.
Current tax settings have fuelled speculative investment in existing homes, inflated prices, and diverted public revenue away from urgent housing needs. While these reforms will not solve the housing crisis on their own, they represent the most significant improvement to Australia’s housing tax settings in a generation.
Despite ongoing misinformation and lobbying from vested interests, the evidence shows the reforms are balanced, practical and long overdue. Enacting them would be an important step toward a fairer tax system, a more affordable housing market, and a housing system that prioritises homes for people over tax-driven speculation.