The St Vincent de Paul Society National Council welcomes the Federal Government’s reforms to capital gains tax (CGT) and negative gearing announced in the 2026–27 Budget, describing them as a meaningful step toward improving fairness in Australia’s housing system.

National Council President Mark Gaetani said the changes to the tax settings for investment properties would begin to help rebalance intergenerational equity and reduce some of the structural pressures that have locked too many Australians out of secure, affordable housing.

“For too long, tax settings have disproportionately favoured property investors over first home buyers and low-income renters,” Mr Gaetani said. “These reforms recognise that housing should be treated first and foremost as a basic human right, not primarily a vehicle for wealth accumulation.”

The Society has consistently advocated for reforms to property investor tax incentives, including reducing the former 50% CGT discount, as part of a broader strategy to address Australia’s housing crisis.

“But housing reform cannot be looked at in isolation. Millions of Australians are still struggling to pay for the basics such as food, rent, utilities and school costs, and many are surviving on incomes that are simply too low,” Mr Gaetani said.

“With around 3.6 million people in Australia living in poverty, including one million children and young people*, and JobSeeker still sitting around 38% below the poverty line, this Budget needed to do more to lift income support payments for those of us being left behind.

“The best way to address inequality is to further reform taxation and increase income support for those living below the poverty line. Increasing income support payments helps to ensure everyone can afford what they need and that children get the right start in life.”

Mr Gaetani said fairer tax settings should help build a more just and compassionate Australia, but only if governments make deliberate and brave choices about where to redirect the savings.

“If the Government is serious about easing the housing crisis, it must make sure the benefits of CGT and negative gearing reforms flow towards those facing the greatest pressure, not just to the Budget bottom line,” he said. “That means reinvesting in the housing and income supports that give people real security and reduce reliance on charities which are struggling to meet burgeoning demand for cost-of-living relief.”

The Society believes the Federal Budget should be judged not only on economic outcomes, but whether it improves life for those of us facing poverty, housing insecurity and homelessness.

“A wealthy country like Australia can afford a fairer and more compassionate approach,” Mr Gaetani said. “These reforms are a positive start and they must be matched by serious investment in housing and adequate income support that helps people to live a decent life if we are to deliver lasting change.”

*Economic Inclusion Advisory Committee 2026 Report to Government

The St Vincent de Paul Society in Australia consists of around 40,000 members and volunteers who operate on the ground through over 1,000 groups located in local communities across the country.

MEDIA CONTACT
0475 068 209 or media@svdp.org.au

Tax reform revenue must be redirected to housing, income support