Treasurer under pressure to cut CGT discount before budget

Speaking in the Senate last week, senator Fatima Payman told the government Australians were looking to see serious changes to address housing affordability, including changes to the CGT discount and negative gearing, with the housing crisis continuing to escalate.

Payman said that, given the level of support for CGT discount and negative gearing measures from various independents and the Greens, the government could consider introducing these measures into parliament now.

"The numbers are here. You don't need to read the budget. You could pass these reforms through the Senate today, and you would have our support. The major parties are always rushing things through this chamber without thinking, without scrutiny, so why not rush something good through for a change?"

Payman said that Labor had used "doublespeak" in the final report by the Select Committee on the Operation of the Capital Gains Tax Discount, leaving its position on the CGT discount unclear.

Labor senators in the report said the government would consider the findings by the committee, alongside other advice and analysis, in considering potential future reforms.

Payman said that implementing bold reforms to address housing affordability would create stability for Australians and also encourage innovation and productivity.

"When people have the security and the stability that owning their own home provides, it truly allows them to do more than just survive. They can plan for their future, they can start thinking about starting a family, and they can start to innovate," she said.

"If we want to address this country's productivity woes, we need to create an environment where people feel safe enough to take those measured risks, not just make ends meet."

Payman and the Greens also accused the government of hiding Treasury modelling on the 5 per cent deposit scheme, which they stated had further contributed to the housing crisis.

Greens senator Barbara Pocock said the 5 per cent deposit scheme had essentially "poured fuel" on the housing crisis.

"A record high $40 billion was given to property investors, taken out in loans by property investors, in the last three months of 2025, an absolute record take by investors, who poured it into investing in property, many of them already wealthy property investors," Pocock said.

"Labor has to take its responsibility for making this crisis worse much more seriously. House prices have increased by 25 per cent in the last term of Labor over the four years. That is appalling. We need policy action and remediation of that crisis, which Labor is ducking," Pocock added.

Pocock noted that CGT discount and negative gearing have amounted to roughly $53 billion worth of tax concessions over the four years Labor has been in government.

"There are policy instruments available to Labor to do better than to make the crisis worse."