Labor to Tax Family Trusts in Overhaul of Wealth Creation Channels for Australians

Australian Treasurer Jim Chalmers delivers the 2026-27 Federal Budget at Parliament House in Canberra, Australia on May 12, 2026. Hilary Wardhaugh/Getty ImagesThe Albanese government has introduced major changes to wealth generation channels for Australians.Leading up to the budget, there was much scrutiny over proposed plans to remove negative gearing for property investors, change the Capital Gains Tax (CGT), and introducing a new minimum tax on family trusts.Changes to Negative GearingAs of 2025, approximately 1 million Australian taxpayers claim negative gearing on residential investment properties. These investors, comprising about 35 percent of all property owners, use rental losses to offset other income, with the average annual tax deduction per investor being around $8,700.