Labor to Tax Family Trusts in Overhaul to Wealth Creation Channels for Australians
The government says the new rates will make for a ‘level playing field’ between wage and salary earners and those who derive their income in other ways.
Australian Treasurer Jim Chalmers delivers the 2026-27 Federal Budget at Parliament House in Canberra, Australia on May 12, 2026. Hilary Wardhaugh/Getty Images
The Albanese government has introduced major changes to wealth generation channels for Australians.
Leading up to the budget, there was much scrutiny over proposed plans to remove negative gearing for property investors, change the Capital Gains Tax (CGT), and introducing a new minimum tax on family trusts.
Changes to Negative Gearing
As of 2025, approximately 1 million Australian taxpayers claim negative gearing on residential investment properties. These investors, comprising about 35 percent of all property owners, use rental losses to offset other income, with the average annual tax deduction per investor being around $8,700.
Rex Widerstrom is a New Zealand-based reporter with over 40 years of experience in media, including radio and print. He is currently a presenter for Hutt Radio.
