The Albanese government has passed significant reforms to capital gains tax and negative gearing, marking a long-overdue shift in Australian housing policy.These changes aim to address decades of poor policy that inflated house prices by adding inflationary measures.

While the reforms are welcomed as a starting point, experts argue they must be part of broader efforts including state cooperation and increased investment in social housing.

The 2026 budget faced criticism from property industry groups, opposition parties, and Murdoch-aligned media, who claimed the policies unfairly target start-ups.However, concessions have been made to slightly dilute the changes.

The article emphasizes that fixing housing affordability requires sustained tax reform, collaboration across governments, and substantial investment in social housing infrastructure.

Contributors Saul Eslake and Adrian Pisarski highlight the need for systemic change beyond isolated policy adjustments to create lasting impact on Australia’s housing crisis.