The Labor government introduced the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 on May 28, offering a $250 annual tax offset for over 13 million workers from mid-2027 and a $1,000 instant work expense deduction next year.
It limits negative gearing to new builds from July 2027 and reforms capital gains tax to target only real gains with a 30% minimum top-up, aiming to ease living costs and help first home buyers.
Critics like Opposition Leader Angus Taylor call it a massive tax grab without a 2025 election mandate, while Labor points to modelling showing most young Australians benefit long-term; the bills now go to committee review.