Government Is ‘Taxing Property Like Tobacco’: Peak Property Body Says

The housing sector has warned that Labor’s tax reforms would increase the tax burden on property businesses, affecting consumers and reducing housing supply.

(L to R) HIA chief economist Tim Reardon, HIA Managing Director Jocelyn Martin, Property Council of Australia CEO Mike Zorbas, and Master Builders Association CEO Denita Wawn appear before the Senate Economic Committee in Canberra, Australia, on Jun. 15, 2026. Screenshot from parliamentary proceedings

A peak industry body for Australia’s property sector has raised concerns that the Labor government is “taxing property like tobacco” through its latest changes to capital gains tax (CGT), negative gearing and discretionary trusts.

Following the release of its 2026-27 budget, the government is pushing to replace the current 50 percent CGT discount with an inflation-based system that taxes only “real” gains, alongside a minimum tax rate of 30 percent on capital gains.