Senate Passes Labor Tax Reforms on Housing Despite Coalition and One Nation Opposition

Treasurer Jim Chalmers says the reforms will right historic wrongs in the tax system.

The Senate Chamber during a division at Parliament House in Canberra, Australia on Feb. 4, 2026. Hilary Wardhaugh/Getty Images

Labor’s tax reforms have passed the Senate, clearing the way for changes to negative gearing and capital gains tax arrangements from July 1, 2027.

The legislation, which passed with the support of the Greens, restricts negative gearing to newly built homes and removes the 50 percent capital gains tax discount for investment properties and some businesses.