Labor's tax reforms, set to take effect on July 1, 2027, will introduce new capital gains tax (CGT) rules that affect all CGT assets, including shares. The current 50% CGT discount will be replaced by cost-base indexation, which accounts for inflation in calculating capital gains. This change may negatively impact investors whose shares have significantly appreciated but could benefit those with modest stock performance. Despite these changes, investors can still negatively gear their portfolios, limiting the overall impact on share investments.

In terms of home ownership, the reforms could make it slightly easier for young Australians to buy homes by reducing the advantages that investors currently have in the housing market. House prices have surged over 400% since 1999, creating a significant affordability crisis. As financial adviser Andy Darroch notes, while the new tax framework may reduce the effectiveness of using share investments to save for a home deposit, it could also lead to lower home prices, making ownership more achievable for younger generations.