Young voters, property investors react to Australian government's tax changes

SYDNEY - Australia's centre-left Labor government will pare tax breaks for landlords as a way to help improve the ability of young Australians to own a home, in the biggest housing tax changes the country has seen this century.

Because the changes to negative gearing and capital gains tax will be grandfathered for existing investors, economists expect the initial impact on house prices and rents to be modest. The Commonwealth Bank of Australia expects house prices to rise 3% this year, down from a previous forecast of 5%.

Here is what some young voters, investors, and real estate agents are saying as Treasurer Jim Chalmers handed down his fifth federal budget on Tuesday.

JUSTIN SIMON, CHAIR OF SYDNEY YIMBY, A HOUSING ADVOCACY GROUP

"This ends 25 years of the federal government trying to fix housing by pumping up demand, and they're recognising that you don't put out a fire by pouring more petrol onto it.

"We support the policies to wind back demand. We especially support that they're taking that money and they're putting it back into supply."

SHARATH MAHENDRAN, A 24-YEAR-OLD STUDENT IN SYDNEY

"I definitely support the changes to capital gains and negative gearing. I think for too long the way that tax has been set up in this country massively benefits those who already have wealth, those who already have assets, those who already own homes, those who are already investing.

"For me, the housing changes are the much more important thing because, yes, of course I invest in shares, but I care a lot more about housing. Because for me, that's where my future is - wanting to own a home and wanting to raise a family."

BEN KINGSLEY, CHAIR OF THE PROPERTY INVESTORS COUNCIL OF AUSTRALIA

"There is a genuine risk that many investors decide to cash in their gains at the same time, only to discover that everyone else has had the same idea.

"There is a material risk of wiping out billions of dollars of value off tens of thousands of homeowners' and investors' properties in these regional markets. That is a significant unintended consequence no government will want to happen on their watch if it materialises."

JACK HENDERSON, A PROPERTY INVESTOR WHO OWNS THE MAJORITY OF HIS 17 PROPERTIES IN A COMPANY STRUCTURE

"It doesn't really affect someone like me, because negative gearing and capital gains tax are two things that are only applicable if you own property in your personal name. It is not going to change anything for us outside of a slight tweak to our strategy to make sure that we're still absolutely getting every benefit that we can.

"I think it is a tax grab, absolutely. You know, they understand that they've dug themselves a trillion-dollar (debt) hole. And they need to dig themselves out of it. But instead of incentivising productivity, they're trying to tax the people that have the most amount of money."

DAVID MURPHY, A REAL ESTATE AGENT IN SYDNEY'S LOWER NORTH SHORE

"We are seeing more investors (selling). That's not just related to the budget. I think that's also related to the change in tenancy laws making it more challenging to be an investor.

"I think there's a lot of downward pressure on prices at the moment. If I had to bet, I would say I think prices will ease in the next two quarters. Normally the things that change the market for the better are a change in government or lowering of interest rates. And I don't think we're getting either of those this year."

(Reporting by Stella Qiu; Editing by John Mair)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 12, 2026 at 10:01 PM.