‘Complete Bulls***’: Debate Erupts Over Claims Property Tax Overhaul Will Drive Rents Up 30 Per Cent

Experts and economists clash over the Albanese Government’s plan to wind back negative gearing and CGT concessions, with some predicting a rental surge and others dismissing the claims as "bulls***."

By: AXL Media

Published: Apr 11, 2026, 5:40 AM EDT

Source: news.com.au

The Proposed Reforms: What’s on the Table?

While official details remain under wraps until the budget delivery, industry insiders and Treasury leaks suggest two primary levers will be pulled:

CGT Discount Reduction: The current 50% discount for properties held over 12 months is expected to be slashed to 33%. This figure is intended to align more closely with long-term inflation averages.

Negative Gearing Caps: Legislation may limit the ability to deduct rental losses to a maximum of two properties per investor.

Grandfathering: To avoid "total outrage," it is widely predicted that properties owned prior to the July 1, 2026 cut-off will retain existing tax benefits until sold.

The "Rents Will Soar" Argument