Australia Approves Historic Tax Overhaul Targeting Housing Affordability

Australia's lower house passed a groundbreaking tax reform bill aimed at boosting housing affordability. The legislation, now heading to the Senate, seeks to curb property investor tax breaks and limit negative gearing to newly built homes, alongside offering new tax reliefs to workers.

Australia's lower house of parliament approved a sweeping tax reform bill on Thursday, representing the most significant changes in decades. The legislation, which seeks to make housing more affordable, includes curbing tax breaks for property investors and eliminating a capital gains discount.

The reform measure passed the House of Representatives by a vote of 94-48, overcoming amendment attempts by the opposition and independent members. Prime Minister Anthony Albanese announced the bill's passage on X, emphasizing tax cuts for workers and support for first-time homebuyers.

As part of the federal budget's reforms, inflation-adjusted gains will replace the 50% capital gains discount on assets held longer than a year, starting in July 2027. The bill also introduces a new tax offset and instant tax deductions to benefit workers, providing significant annual savings.