What property tax changes is the Australian Government proposing in the latest budget?

The Albanese Government is introducing legislation to increase capital gains tax (CGT) and curb the use of negative gearing. Under the proposed budget measures, the current 50 per cent CGT discount for assets held longer than 12 months will transition to an inflation-indexed system starting 1 July of next year.

Why are the Greens demanding tougher property tax measures from the government?

The Greens are pushing for stricter measures to maximise tax revenue, which they argue could fund larger tax cuts than the budget's proposed $250-a-year Working Australians Tax Offset. They believe scaling up these property tax changes will help build public support for an otherwise unpopular federal budget.

What specific changes to Capital Gains Tax (CGT) are the Greens demanding?

The Greens want to cap the maximum CGT discount at 50 per cent under the new inflation-indexed scheme to prevent some assets from receiving an even higher discount. They are also advocating for a cap on CGT deductions and pushing for stricter limits on the grandfathering of existing property assets.

How do the Greens' property tax demands affect the legislative timeline?

The government is racing to pass this tax legislation before the parliamentary winter break deadline on 2 July. However, because the minor party holds a balance of power position, their refusal to guarantee passage or bypass a Senate inquiry threatens to delay the bill beyond this July deadline.

Why are small-to-medium enterprises (SMEs) and startup founders pushing back against the CGT changes?

SMEs and groups like the Female Founders coalition argue that the higher capital gains tax disincentivises risk-taking and makes deploying capital more expensive. Female entrepreneurs specifically warn that the changes increase barriers to securing loans and attracting talent, which risks discouraging the next generation of women from launching businesses.

What is the main bear case for property investors and business owners regarding this tax policy?

The primary bear case is that the combined changes represent a structurally higher cost of deploying capital in Australia, making the country less globally competitive.

Image for illustrative purposes only. Not a real photo.

Greens demand tougher property tax budget measures

Written by Liezl GambePublished May 21, 2026, 10:31 PM

Preliminary negotiations reportedly have commenced between the Albanese Government and the Greens over contentious property tax legislation, with the minor party demanding tougher measures despite mounting pressure from the business sector for widespread exemptions.

The government is racing to pass the budget legislation — which increases capital gains tax and curbs negative gearing — before the parliamentary winter break on July 2.

However, sources reveal the Greens have not yet guaranteed passage, nor have they agreed to bypass a Senate enquiry.

Seeking to maximise revenue, the Greens are pushing to cap the maximum CGT discount at 50% under the proposed inflation-indexed system whilst advocating for stricter limits on the grandfathering of existing assets.

They argue these bolstered measures could fund more substantial tax cuts than the budget's $250-a-year Working Australians Tax Offset, potentially saving a friendless budget.

The government faces fierce backlash from small-to-medium enterprises and teal independents, who argue the changes disincentivise investment.

The Female Founders coalition, representing ten prominent entrepreneurial women, issued a statement warning the CGT changes risk discouraging the next generation of women from launching businesses.

They heavily criticised former prime minister Paul Keating's dismissal of critics as out of touch.

Adding to the pressure, billionaire Ryan Stokes warned the policy would drive investment overseas, stating, "Cumulatively, this is not tax reform; this is a higher cost of deploying capital in Australia."