Treasurer Jim Chalmers has reaffirmed the Albanese government's controversial changes to capital gains tax as part of a comprehensive tax reform package, the most ambitious in 25 years. The proposed legislation, introduced to Parliament, includes several key measures aimed at benefiting workers and addressing housing market issues. Notably, a $250 annual Working Australians Tax Offset (WATO) is projected to assist 13 million workers, while a $1,000 instant tax deduction is set to simplify tax returns for 6.2 million individuals. Significant changes to capital gains tax will see the elimination of the 50% discount in favor of an inflation indexation model, imposing a minimum 30% tax rate on real gains. Additionally, negative gearing will be restricted to new housing developments starting in July 2027. Chalmers emphasized that these reforms are designed to alleviate cost-of-living pressures and redirect investment towards increasing housing supply. However, opposition parties have raised concerns, labeling the package as divisive and warning of potential hidden tax increases.