On May 16, 2026, Queensland Premier David Crisafulli expressed skepticism about the federal government's proposed changes to capital gains tax and negative gearing, stating they may not effectively address the housing crisis in the state. The federal government announced plans to reduce the capital gains tax discount from 50% to 25% and limit negative gearing to new properties starting January 1, 2027, aiming to increase housing supply and affordability.
According to a report by the Queensland Treasury, the state faces a shortfall of approximately 30,000 homes, with rental vacancy rates below 1% in major cities like Brisbane. Crisafulli argued that the changes could deter investors, potentially reducing rental stock and worsening affordability for tenants. He called for a focus on supply-side measures, such as streamlining approvals and investing in social housing.
Federal Treasurer Jim Chalmers defended the reforms, citing Treasury modeling that projects an additional 20,000 homes over five years due to redirected investment. However, the Property Council of Australia warned that the changes might lead to a 5% drop in property values in some regions, including Queensland, based on their analysis of investor behavior.
