What are the proposed budget changes to negative gearing and capital gains tax?

The Federal Government’s latest budget proposes tightening negative gearing rules and reducing capital gains tax (CGT) discounts for property investors.

Why is the Coalition opposing the new housing tax measures?

Opposition Leader Angus Taylor argues the changes will "cripple" the housing market by diminishing the supply of new homes and driving up rents for existing tenants.

How will the housing tax changes affect Australian renters?

According to the Opposition, these tax hikes will likely lead to higher rents as the supply of available rental properties diminishes.

What is the expected impact of the budget on first-home buyers?

The budget forecasts an additional 7,500 new first-home buyers annually due to these changes. However, the Opposition claims this is a negligible 0.1% increase that offers no material relief to young Australians, especially when compared to the current housing shortfall of 70,000 units per year.

How does migration policy factor into the current housing supply debate?

The Opposition argues that the government’s migration targets—expecting two million arrivals over two parliamentary terms—will exacerbate the housing crisis.

Which budget measures does the Coalition actually support?

Despite opposing housing reforms, the Coalition supports the $250 income tax offset for working Australians and the permanent extension of the $20,000 instant asset write-off for small businesses.

Taylor slams budget housing taxes as aspiration assault

Written by Mahathir BayenaPublished May. 13 2026Last Updated May. 13 2026

Opposition Leader Angus Taylor has launched a scathing attack on the Federal Government’s latest budget, labelling proposed changes to negative gearing and capital gains tax as a direct "assault on aspiration".

While the reforms appear destined for a smooth passage through the Senate with the Greens' support, Taylor insists the Coalition will "fight tooth and nail" to block measures he claims will cripple the nation's housing market.

Speaking on ABC Radio National, Taylor warned that the tax hikes would lead to a catastrophic "imbalance" by diminishing housing supply and driving up rents for those already struggling.

"The hostility will be enormous," Taylor remarked, suggesting the government has severely underestimated public anger.

He argued that the budget's own forecasts—predicting 7,500 new first-home buyers annually—represent a negligible 0.1% increase that offers no material relief to younger Australians.

Taylor further criticised the government’s migration targets, noting that with two million arrivals expected over two terms, the current housing shortfall of 70,000 units per year will only worsen.

Despite the fierce opposition to housing reform, the Coalition confirmed it would support several "pro-growth" measures.

This includes the $250 income tax offset for workers and the permanent extension of the $20,000 instant asset write-off for small businesses.

Taylor also welcomed the expanded research and development tax refund threshold for young companies, noting that supporting small business investment remains a core pillar of the Coalition’s economic platform.

However, on the issue of property taxes, Taylor remained defiant: "We are dead against this."