05/06/2026
Rarely has a Federal Budget had such an immediate and significant impact on consumer sentiment and confidence in the property market like the one delivered by Treasurer Jim Chalmers in May 2026.
The changes outlined in the Budget have not even passed through the Parliament yet.
Given the Government has the numbers though, you can reasonably expect they will be ratified unless there is a back bench revolt.
If the Budget is passed in its current format, there will be a long and lasting impact on Australia’s property market. Negative Gearing has been axed on existing dwellings for landlords who buy an investment property after Budget Night.
Under the new changes announced by the Treasurer, landlords can still take advantage of Negative Gearing only for brand new dwellings though.
The Budget was positioned as a war on ‘Intergenerational Inequality’.
Like many Government reforms, they seem simple enough at face value, but the ripple effect is usually far and wide – the unintended consequences immense and the outcome often the opposite of what was originally intended.
The Government seems to have hit far more public resistance to their reforms than they were anticipating.
The resistance is primarily driven by two key points – firstly the Government had no political mandate to remove Negative Gearing or CGT. Particularly given Anthony Albanese claimed he had promised ‘for the 50th time’ to leave both tax policies in place when quizzed during the 2025 Federal Election
Secondly, the notion these tax reforms will arrest the Intergenerational Inequality is hard to stomach, given the proposed changes benefit those already in the property market more than those trying to enter the market.
Whether one agrees or disagrees with the reforms outlined in the Budget, there is no doubt the Government is playing with fire.
If the Australian housing market suffers a significant and lasting downturn which is attributed to the Government’s Budget, they will struggle to hold office.
Read more via https://bit.ly/RERJuneIssue221
