Treasurer Jim Chalmers has refused to deny whether or not the Albanese government will break its pre-election tax promises in the Federal Budget.
'Wait and see': Treasurer Jim Chalmers refuses to rule out broken tax promises in May 12 Federal Budget Treasurer Jim Chalmers has refused to deny reports he will break Labor’s pre-election promises on negative gearing and capital gains tax in the May 12 Federal Budget .
Treasurer Jim Chalmers has refused to deny whether or not the Albanese government will break its pre-election tax promises in the Federal Budget. Speaking to Sky News on Wednesday, Mr Chalmers attempted to pour cold water on speculation but repeatedly declined to rule out the possibility of breaking promises.
“I'm not going to pre-empt the announcements that we make on Tuesday night for all the reasons that you would understand,” he said. Treasurer Jim Chalmers has refused to confirm or deny whether or not the Albanese government will break its pre-election tax promises in the Federal Budget. Mr Chalmers said that the budget would be the most ambitious that he had ever delivered and pointed to the need for reform in the housing and tax systems.
“I think it's really clear to a lot of Australians that the housing market and the tax system is making it harder for people, particularly for younger people,” he said. Mr Chalmers teased voters, saying they would have to “wait and see” if the government was going to break its promises.
“You have to wait and see what's in the budget on Tuesday night. I mean, it's not that far away now,” he said.
“I'm obviously aware there's a lot of speculation. That speculation can be right and it can be wrong. ” The comments come amid growing expectations the Albanese government will push ahead with major tax reforms after previously ruling out several changes.if he would categorically rule out changes to negative gearing, Mr Albanese said “Yeah, it’s off the table”. He also ruled out changes to capital gains tax in May 2025, saying: “The proof's in the pudding.
If we were going to make changes, then why haven't we? ” In January 2024, the Treasurer was asked to rule out changes to negative gearing, telling Sky News chief anchor Kieran Gilbert:"We haven't changed our view on that".
"We haven't changed our view on those other proposals. We have changed our view on the stage three tax cuts and more than that, when we've come to a different view," Mr Chalmers said. Sky News revealed on Sunday that Labor has been examining a broad package of tax reforms The latest indications suggest the government will move to restrict negative gearing to new properties, while grandfathering existing investments.
Existing owners would be shielded from changes but future investors would no longer be able to deduct losses on established properties, under such an arrangement. At the same time, the government appears ready to overhaul capital gains tax, replacing the 50 per cent discount with an inflation-adjusted real gains model. It remains unclear whether the change would be fully grandfathered or applied through a partial reset, where existing assets are revalued before the new system takes effect.
Sources also told Sky News that a tax on family trusts – used by higher-income households to minimise tax – remains under consideration. While a final decision has not been confirmed, expectations within government circles are that such a measure will be included.
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