In a landmark move, Treasurer Jim Chalmers announced the most significant tax reforms in over 25 years during Australia's federal budget presentation. The reforms target negative gearing and capital gains tax (CGT), shifting the tax burden from income to assets. Starting July 1, 2027, the 50% CGT discount will be replaced with a cost-base indexation system, taxing only the profit exceeding inflation. This change is expected to raise approximately $3.6 billion over four years. Additionally, a new 30% minimum tax on discretionary trusts will be introduced from July 1, 2028, projected to contribute $4.5 billion to the budget over five years. The government anticipates these reforms will help an additional 75,000 Australians enter the housing market over the next decade, despite concerns from the Coalition and property lobby groups about potential negative impacts on housing supply and affordability. While the changes aim to reduce the competitive advantage of investors in the housing market, existing investors will retain their negative gearing benefits for properties purchased before the budget announcement. The government acknowledges that rising house prices, which have increased over 400% since 1999, have contributed to a growing affordability crisis, particularly affecting first home buyers.