Australia’s opposition Coalition said it would repeal Labor’s proposed toxic changes through to negative gearing, capital gains tax and family trusts if it wins power, setting up a major political fight over housing and tax policy ahead of the next election.
Opposition leader Angus Taylor and shadow treasurer Tim Wilson said a future Coalition government would reinstate the tax rules and oppose the measures in parliament.
“Absolutely, our position is we’re going to do everything we can to stop these bad taxes, toxic taxes, from getting through the parliament,” Taylor told Sky News.
Labor is accused of breaking a pre-election promise not to touch tax breaks and coming up with unexpected and controversial changes to the tax law.
Opposition Leader Angus Taylor branded Labor’s controversial tax reform an "assault on aspiration".
Treasurer Jim Chalmers announced in Tuesday’s budget plans to end negative gearing for new investment properties and scale back the 50% capital gains tax discount, with changes due to take effect from 2027.
Wilson said the Coalition would seek to block the measures and repeal them if enacted, describing the changes as harmful to younger Australians.
The Coalition’s position could leave a hole of about A$70 billion in the budget over time, requiring offsetting savings or new revenue measures.
The Greens said they would push for stronger reforms before backing the proposals in parliament, with leader Larissa Waters calling the measures insufficient and seeking further detail from the government.
Prime Minister Anthony Albanese defended the budget, including a A$250 tax offset for workers, saying it was designed to benefit taxpayers rather than those below the tax-free threshold.
The next federal election is due by mid-2028, when the full set of proposed tax changes would be in place.
