Australia Passes Major Tax Reform to Tackle Housing Costs

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Canberra: Australia's lower house of parliament has approved sweeping tax reforms aimed at making housing more affordable and reducing tax advantages for property investors.

The bill, passed by a 94-48 vote on Thursday, would limit negative gearing benefits to newly built homes and replace the current 50% capital gains tax discount with a new system that taxes inflation-adjusted gains. A minimum 30% tax on net capital gains would take effect from July 2027.

Prime Minister Anthony Albanese said the reforms would deliver tax relief for workers while helping first-time home buyers compete in the housing market.

The package also includes a A$250 tax offset and a new A$1,000 instant tax deduction for workers, on top of previously approved tax cuts worth up to A$536 a year.

The legislation now moves to the Senate, where the government will need support from crossbench lawmakers to secure its passage.

Pic Credit: AFP