Taylor Vows to Block Labor’s Negative Gearing and CGT Changes

Opposition Leader Angus Taylor has vowed to scrap Labor’s property tax reforms, including changes to negative gearing and capital gains tax (CGT), if the Coalition wins the next election.

“If it gets through the parliament, and as I say, we’re going to do everything we can to stop it. Of course, we’ll do what is necessary to get rid of these taxes, absolutely,” Taylor said on the Sunrise program on May 14.

“We’re going to fight, even if it gets through the parliament. We’re going to make life hell for this government because this is an assault on aspiration. It is an assault on hard working Australians.”

In the meantime, Taylor said his party would work with affected Australians to stop the tax reforms from being implemented “in the first place.”

“We’ll be working with small businesses, with those who are trying to save a nest egg, because they’re going to get punished under this,” he said.

“Those trying to grow a business, for those who are trying to buy a home or get ahead through owning a home, we’re going to be working with them to fight against this rotten legislation.” 

Moreover, the opposition leader said he would help solve the housing problem for young Australians by getting migration to sustainable levels and improving housing supplies.

“The right answer is to get the balance right between the number of people in this country and the houses we have,” he said. 

Taylor’s comments come as the Labor government has rolled out major tax reforms targeting negative gearing, capital gains tax (CGT) and discretionary trusts, reshaping how Australians will invest in property after 2027 and carrying significant implications for the housing market.

While the government said the reforms are necessary to improve housing affordability, create a “fairer” tax system, and put downward pressure on rents, concerns remain that they could reduce housing supply, increase rents and discourage investment.

Small Business Owners’ Concerns

The Council of Small Business Organisations of Australia (COSBOA) has expressed “serious concerns” about the potential impacts of the tax reforms on small businesses.

“The proposed changes to Capital Gains Tax and the taxation of trusts have the potential to significantly disrupt the retirement plans of many small business owners,” COSBOA CEO Skye Cappuccio said.

“For many Australians, their business is their retirement asset. Changes that reduce the value of business sale proceeds or associated property holdings could have major long-term consequences for owners who have spent decades building their businesses.

“Small business needs fairness in the tax system, but it also needs stability, certainty and simplicity.”

Cappuccio further urged Labor to consult with stakeholders to minimise unintended outcomes and ensure the reforms are workable in practice.