Key Changes in Australia's 2026 Budget: Housing, Healthcare, and Tax Reforms
The complete 2026 Australian budget: choose the news coverage that matters to you
The Guardian
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Australia's 2026 budget introduces significant reforms including the replacement of the 50% capital gains tax discount with cost-base indexation, changes to negative gearing, and increased funding for healthcare and defense. These measures aim to enhance housing affordability and support various sectors, impacting taxpayers and service recipients nationwide.
- 01The 50% capital gains tax discount will be replaced by cost-base indexation starting July 2027.
- 02Negative gearing will now only apply to new residential builds to encourage investment in housing.
- 03The government plans to cut the growth of the National Disability Insurance Scheme (NDIS) significantly.
- 04An additional $2 billion will be allocated for housing infrastructure to support the construction of new homes.
- 05A new tax cut of $250 per worker will be introduced from the 2027-28 income tax year.
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The Australian government's 2026 budget outlines major reforms aimed at improving housing affordability and enhancing public services. Starting July 2027, the 50% capital gains tax (CGT) discount will be replaced with cost-base indexation, impacting all assets held for over a year. Additionally, negative gearing for residential properties will be limited to new builds, directing benefits towards increasing housing stock. The budget also includes a $2 billion investment in housing infrastructure, expected to facilitate the construction of 65,000 new homes over the next decade. Significant changes to the National Disability Insurance Scheme (NDIS) will see the removal of 160,000 participants and a reduction in growth from over 10% to about 2% annually. Furthermore, the budget allocates $6.8 billion for defense spending and introduces a $250 tax cut for workers starting from the 2027-28 tax year. These measures reflect the government's commitment to addressing housing challenges and supporting essential services.
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The budget reforms aim to make housing more affordable and improve public services, directly benefiting homebuyers, taxpayers, and individuals reliant on the NDIS.
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