Key facts
- Australia's lower house passed a major tax overhaul bill.
- The bill curbs tax breaks for property investors.
- It scraps the 50% capital gains discount for assets held longer than a year.
- A 30% minimum tax on net capital gains will start from July 2027.
- Negative gearing will be limited to newly built homes.
- The bill includes tax cuts for workers, with a A$250 tax offset and A$1,000 instant deduction.
Australia's lower house of parliament passed a bill on Thursday for the government's most substantial tax overhaul in decades. The legislation aims to improve housing affordability by curbing tax breaks for property investors and scrapping the 50% capital gains discount for assets held longer than a year. A 30% minimum tax on net capital gains will be implemented starting July 2027. The bill also limits negative gearing to newly built homes to encourage new housing supply. Additionally, it provides workers with a new tax cut, including a A$250 tax offset and a A$1,000 instant tax deduction, on top of existing legislated cuts. The measure cleared the House of Representatives with a 94-48 vote and now proceeds to the Senate, where the government will need crossbench support to pass.