Treasurer Jim Chalmers described the budget as the government’s most ambitious economic plan in decades.
The reforms target capital gains tax discounts and negative gearing benefits tied to investment properties.
Officials argued existing tax settings favored wealthy investors and pushed home ownership further beyond younger Australians.
From July 2027, Australia will replace the 50% capital gains tax discount with inflation-indexed taxation rules.
The government also plans a 30% minimum tax on net capital gains across all major assets.
Negative gearing benefits will apply only to newly built homes, encouraging fresh housing construction nationwide.
Canberra also introduced new tax relief measures, including a A$250 offset and a A$1,000 instant deduction.
Economists warned higher inflation and rising interest rates could still pressure households despite the government’s cost-of-living support initiatives.
