Story perspectives

Australia's 2024 budget ends CGT discount, limits gearing, taxes trusts

5/13/2026

Summary

Story summary

The Labor government’s 2024 budget announced the biggest housing-tax overhaul in a century.
The 50% capital gains tax discount ends July 1 2027, with a 30% tax on net gains taking place.
Negative gearing will apply only to new residential builds.
Losses on existing properties will be deductible only against rental income or capital gains.
A 30% minimum tax on discretionary trusts starts July 1 2028 to curb rapid trust-asset growth among wealthy households.

History

Historical Context

Australia’s tax system modernised with the 20 September 1985 introduction of capital gains tax and the Howard government’s 1 July 2000 rollout of a 10 % GST, the most recent wholesale reform. The 2024 budget now ends the 50 % CGT discount, limits negative gearing to new builds and adds a 30 % trust tax, prompting the Reserve Bank to watch housing affordability.

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Story summary

The Labor government’s 2024 budget announced the biggest housing-tax overhaul in a century.
The 50% capital gains tax discount ends July 1 2027, with a 30% tax on net gains taking place.
Negative gearing will apply only to new residential builds.
Losses on existing properties will be deductible only against rental income or capital gains.
A 30% minimum tax on discretionary trusts starts July 1 2028 to curb rapid trust-asset growth among wealthy households.

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