Senate Report into Budget tax hikes fails housing supply

19 June 2026

Today, the Senate Economics Legislation Committee released its report on the first tranche of Budget legislation covering proposed changes to negative gearing and the Capital Gains Tax Discount.

Master Builders Australia CEO Denita Wawn said the Committee’s majority support for the new tax hikes on housing neglects Treasury’s modelling showing that the tax changes will result in fewer new homes being built during a housing supply crisis.

“The Committee’s report turns a blind eye to the Budget’s impact on housing supply. It is a mistake to shift the policy focus away from increasing housing supply and to instead focus on higher taxes to deter investment.

“This week’s Federal Budget amendments will make several changes, but it remains the case that these tax hikes will reduce new housing supply by almost 9,000 homes over four years.

“It will also raise rents creating an environment where renters and aspiring homeowners are competing for a smaller pool of new homes. Independent modelling shows that on a $600 per week rental, the budget will cause an increase that will reach $477 per year in 2029/30.

“This legislation, which the Committee report recommends should pass, will only increase frustration for builders, who are simply trying to get on with the job, as well as aspiring homeowners and renters. The measures in this Budget are not the way to turbocharge housing supply in this country.

“To fix the housing supply and affordability crisis, we need more pro-supply interventions such as enabling infrastructure, less red tape, a stronger workforce pipeline and real incentives for investment, not more taxes on housing.

Media contact: Dylan Hafey, Media Advisor

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