Story perspectives

Labor Tax Bill Limits Gearing, Preserves Widow Carve-out

6/25/2026

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Labor Secures Carve-out

Labor secured a late-stage carve-out keeping widows and divorcees eligible for grandfathered negative-gearing and capital-gains concessions.
The budget tax package passed Parliament on Thursday, June 25 2026, introducing a worker tax offset and negative-gearing limits.
Treasury projects negative-gearing and capital-gains reforms will raise $3.6 billion by 2029-30, $3.1 billion from negative gearing.
Shadow treasurer Tim Wilson said reforms fall short of covering $6.4 billion Working Australians Tax Offset.

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Greens Extend Inquiry

The Greens won an eight-week extension of the Senate inquiry into NDIS reforms, giving disability advocates more leverage.
Labor secured a late-stage carve-out preserving widows’ and divorcees’ grandfathered negative-gearing and capital-gains concessions.
The deal forces the government to close the self-managed super fund loophole for property purchases.
Greens leaders called the tax reforms modest and vowed to oppose NDIS cuts to supports.

History

Historical Context

In 1985 the federal government introduced capital gains tax, and a decade later the 1999 GST legislation established a 10 % national levy. Those reforms broadened the tax base and raised substantial revenue and reshaped the property market. Labor’s 2026 budget now caps negative-gearing deductions, reflecting the enduring debate over property-related taxation.

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Labor Secures Carve-out

Labor secured a late-stage carve-out keeping widows and divorcees eligible for grandfathered negative-gearing and capital-gains concessions.
The budget tax package passed Parliament on Thursday, June 25 2026, introducing a worker tax offset and negative-gearing limits.
Treasury projects negative-gearing and capital-gains reforms will raise $3.6 billion by 2029-30, $3.1 billion from negative gearing.
Shadow treasurer Tim Wilson said reforms fall short of covering $6.4 billion Working Australians Tax Offset.

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