Sydney: Australia's lower house of parliament passed a bill on Thursday for the government's biggest overhaul of taxes in decades, curbing tax breaks for property investors to make housing more affordable and scrapping a capital gains discount.The measure cleared the House of Representatives 94-48 after failed amendment bids by the opposition and some independents. Some businesses had urged the government to exempt them from the capital gains overhaul and confine changes to real estate.Also read: Meta lashes Australia's bid to make tech giants pay for news"Passed the House: tax cuts for every worker and a fair go for first home buyers," Prime Minister Anthony Albanese said on X.The measure now goes to the Senate, where the government lacks a majority and will require crossbench support.The reforms, unveiled in last month's federal budget, will see a tax on inflation-adjusted gains replace a capital gains discount of 50% for assets held longer than a year. A 30% minimum tax on net capital gains will start from July 2027.The bill aims to limit negative gearing to newly built homes so as to steer capital toward new housing supply, narrowing a rule that lets investors offset property losses against taxable income.Also read: Global Markets: Australian shares end flat as banking losses overshadow miners' gainsThe bill also gives workers a new tax cut, through a tax offset of A$250 and a new instant tax deduction of A$1,000 ($710). These will be in addition to already legislated tax cuts giving annual savings of up to A$536 to individual taxpayers.
Australia's lower house passes bill for biggest overhaul of taxes in decades
Australia's parliament has approved a major tax reform. The government is curbing tax breaks for property investors to boost housing affordability. A capital gains discount is being removed. New tax cuts for workers are also included. The bill now moves to the Senate for further consideration. These changes aim to reshape the nation's tax landscape.
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