Chalmers Doubles Down on Capital Gains Changes

Good morning and welcome back. Treasurer Jim Chalmers spent the weekend defending the overhaul of the capital gains tax laws in last week’s budget, arguing they are needed to repair what he describes as a “broken” housing market. Speaking on the ABC’s Insiders, Chalmers said Australia’s tax system has long favored property over other investments, inflating house prices and locking younger Australians out of home ownership.

The changes have quickly become one of the budget’s most contested measures. Critics accuse Chalmers of walking back an election promise not to overhaul housing tax settings, while others warn the reforms could redirect capital away from Australia’s fledgling startup sector and force wealthy investors to rethink long-held strategies.
— Ainsley Thomson, Wellington Bureau Chief