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.
The reforms are aimed at improving housing affordability and increasing investment in new housing supply, according to the government.
He said the reforms addressed long-standing issues in the housing market.
“The Bill fixes a big distortion that was created in our economy over 25 years ago by returning the capital gains tax to its original intent from July 1, 2027,” he said.
“The old intersection between the tax system and the housing market helped make housing unaffordable and coincided with decades of low productivity growth.”
Opposition Leader Angus Taylor criticised the changes, describing them as “toxic taxes” and accusing Labor of pursuing “socialist visions.”
“There’s no mistaking Labor’s socialist visions for our country. They are back at their roots, that’s what they believe in,” Taylor said of Labor.
“Labor’s toxic taxes were rushed through the parliament in a dirty deal with the Greens.
“They are a tax on housing, and when you tax housing, you get less houses.”
Taylor said the taxes would discourage investment across housing, shares, and cryptocurrency.
“You get less investment if you tax investment,” he said. “A tax on savings, a tax on young Australians, on start-ups, on small and family businesses.”
He also criticised a measure opponents have labelled a “widow tax,” which is a part of the capital gains tax reforms that would void tax exemptions if one party dies.
Critics say the change could disproportionately affect women, who on average live longer than men.
The Coalition, along with One Nation, voted against the reforms.
