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English – The Conversation | Will this budget really make housing fairer for more Australians? It’s a good start by Aruna Sathanapally, Chief Executive, Grattan Institute
AI generated summary, Read the full article for complete information.
The 2026 federal budget marks a bold step toward a fairer Australian housing market by tackling long‑standing tax distortions and boosting supply. Treasury’s reforms target the personal‑income‑tax system’s heavy reliance on wages and its generous concessions for wealth, introducing a 30 % minimum tax on future capital gains and trust distributions and beginning to phase out the capital‑gains discount from 2027, while preserving existing negatively‑geared investments. These changes aim to reduce the advantage enjoyed by high‑income property investors—who have earned roughly A$700,000 in tax benefits since 2000 compared with about A$12,400 for typical earners—and are projected to cut the deficit by more than $20 billion a year and modestly lower house prices (about 2 %). To counteract the potential slowdown in construction, the budget funds a $2 billion Local Infrastructure Fund to ease restrictive planning rules and improve productivity, offsetting an estimated loss of 35,000 homes over the next decade. On the expenditure side, the government imposes significant savings, most notably a 2 % annual growth cap on the NDIS worth over $36 billion, positioning the budget to achieve a surplus by the mid‑2030s, though it stops short of extending cost‑of‑living relief or fuel‑excise cuts, leaving many working‑age families without additional support. Overall, the budget tilts the balance toward younger Australians seeking their first home, signalling a shift toward inter‑generational fairness and a more resilient economy.
Read more: https://theconversation.com/will-this-budget-really-make-housing-fairer-for-more-australians-its-a-good-start-282367
#NDIS #Treasury #LocalInfrastructureFund
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