Coalition pledges to overturn capital gains and negative gearing reforms in 2026 budget

The Coalition has formally pledged to repeal changes to capital gains tax and negative gearing should it secure a victory in the next election. Shadow Treasurer Tim Wilson stated that the measures would be overturned to ensure they are never legislated, arguing that the Labor government lacks the necessary community licence to implement the reforms.

Wilson told Sky News that Prime Minister Anthony Chalmers had promised not to alter these incentives during the last election campaign. Consequently, the Coalition contends that the current administration does not possess the mandate required to proceed with the fiscal adjustments. The opposition views the reforms as a breach of that electoral commitment and has vowed to act decisively if they return to power.

Beyond the housing and investment incentives, Wilson highlighted concerns regarding the proposed $250 tax offset for workers. He warned that the value of this offset would be eroded by inflation within six months of implementation. The offset is scheduled to commence for workers after next year, meaning its real-term value would diminish shortly after introduction.

The Coalition described the broader context of the 2026 Budget as difficult, noting that the package has met with a mixed reception. This political dynamic underscores the ongoing tension between the two major parties regarding fiscal policy and the protection of existing housing incentives. The opposition frames its stance as a defence of the community's trust in the government's pre-election promises.

While the specific legislative timeline for the repeal remains contingent on the outcome of the next election, the Coalition has made its position clear. Their objective is to defeat the proposed measures and prevent them from becoming law. The focus remains on the conditional nature of these pledges, which are entirely dependent on the Coalition winning the upcoming poll.