Builders brace as Budget legislation progresses through Parliament

15 June 2026

Today the Senate Economics Legislation Committee held hearings on the first tranche of Budget Legislation covering the proposed changes to negative gearing and the Capital Gains Tax Discount, which increase taxes on housing investment.

Master Builders Australia CEO Denita Wawn in her opening statement called on the Parliament to oppose all business tax hikes in the Budget due to their negative impact on builders and Australian housing supply.

“Our members have expressed immense frustration with all of the tax hikes announced in the Budget. Combined these will stifle business and cause an investment strike.

“Interest rate hikes, disruptions from the Middle East and other challenges such as workforce shortages and increasing red tape continue to constrain the industry. These challenges have only fuelled the housing crisis. It is certainly not the time to place more hurdles in front of builders, which this Federal Budget does.

“Modelling shows the budget will lead to rising rents and a growing housing shortfall. We hoped this budget would support the removal of supply barriers and increase the supply of new homes. Instead, it will result in a shrinking housing pool, with home buyers and renters competing for fewer homes.

“These changes do nothing to help deliver on the Federal Government’s commitment to materially increase new housing supply to its full potential, let alone support the Government’s own target to deliver 1.2 million homes by mid-2029. In fact, they hinder these aspirations,” said Ms Wawn.

Media contact: Dylan Hafey, Media Advisor

0497 330 064 | dylan.hafey@masterbuilders.com.au