As Australia approaches its budget, discussions around potential reforms to capital gains tax (CGT) and negative gearing have gained traction. Historically, negative gearing has been a contentious issue, with claims that it keeps rental prices down. However, evidence shows that rental prices in cities like Sydney and Perth have risen independently of negative gearing policies. The government is reportedly considering limiting negative gearing to two properties, which would impact 90% of investors and reduce backlash against 'mum and dad investors'. Additionally, the CGT discount, which allows investors to pay tax on only half of their capital gains, may be revised to reflect inflation, potentially increasing tax liabilities for property sales. Despite concerns from industry groups, historical data indicates that these changes are unlikely to harm housing supply or increase rents. The political climate appears to be shifting, as voters express a desire for tangible reforms to improve housing affordability and reduce tax breaks for property investors. The government seems poised to act, suggesting that popular policies can diminish the influence of vested interests.