What are the proposed changes to the Australian capital gains tax (CGT) in the 2026 Budget?

The Australian Government plans to scrap the existing capital gains tax discount and return to an inflation-adjusted CGT model. Prime Minister Anthony Albanese stated this reform aims to rebalance the tax system by aligning taxes on income earned from work with wealth generated from assets.

How does the 2026 CGT reform affect property investors and the housing market?

The shift to an inflation-adjusted model eliminates the fixed CGT discount, which may increase the tax burden on property investors selling assets. However, the government argues the policy will help rebalance the market and unlock home ownership opportunities for 75,000 first-home buyers.

Why is the Australian venture capital and startup sector protesting the CGT changes?

The venture capital sector argues that removing the CGT discount reduces the financial incentives for investing in high-risk, high-growth startups. In response to this backlash, Treasurer Jim Chalmers has pledged ongoing consultations with the sector to mitigate potential negative impacts on innovation funding.

What do the latest polls say about voter trust following the 2026 Budget tax changes?

A News Corp poll conducted by Wolf+Smith for Amplify revealed that 51% of voters are less likely to trust the government following the tax changes. The poll highlighted that nearly 70% of respondents viewed the policy as a breach of pre-election promises, severely impacting their view of the administration.

What is the opposition’s alternative economic policy to the government's tax plan?

Opposition Leader Angus Taylor proposed a $22.5 billion bracket-indexing policy over the forward estimates to permanently combat bracket creep. While the Coalition supports the government’s temporary $250 Working Australians Tax Offset, they argue it will be quickly eroded without structural bracket indexation.

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Albanese defends 'difficult' CGT changes amid poor polls

Written by Brie CarterPublished May. 17 2026Last Updated May. 17 2026

Prime Minister Anthony Albanese has conceded his government's controversial decision to scrap the capital gains tax discount is “difficult”, mounting a fierce defence of the 2026 budget amid a bruising new poll.

Speaking alongside Housing Minister Clare O’Neil on May 17, Albanese insisted the shift to an inflation-adjusted CGT model was a necessary measure to rebalance the tax system, making it fairer to income earned from work versus wealth generated by assets.

He argued the reform would unlock home ownership for 75,000 first-home buyers.

The defensive push follows a damaging News Corp poll conducted by Wolf+Smith for Amplify, which revealed 51% of voters are less likely to trust the government following the tax changes.

The policy directly contradicts pre-election promises, a breach of faith that nearly 70% of respondents deemed critical to their view of the administration.

The data comes amid fierce backlash from the venture capital sector, though Treasurer Jim Chalmers has pledged ongoing consultations regarding startup impacts.

Seizing on the figures, Opposition Leader Angus Taylor accused Labor of broken promises, warning of potential "death taxes" and impacts on the family home.

While backing the government’s $250 Working Australians Tax Offset, Taylor claimed bracket creep would fast erode its value, touting the Coalition's alternative $22.5 billion bracket-indexing policy.

Despite the political fallout, Chalmers urged voters to focus on the substance of the reform, acknowledging the government had intentionally shifted its position to deliver long-overdue systemic change.