Question Time AU

Bill Debate · Second Reading

Appropriation Bill (No. 1) 2026-2027, Appropriation Bill (No. 2) 2026-2027, Appropriation (Parliamentary Departments) Bill (No. 1) 2026-2027; Second Reading

House of Representatives · Wednesday 27 May 2026

Continued from Tuesday 26 May 2026.

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

Members debated the 2026-2027 budget, focusing on tax reforms to negative gearing and capital gains tax, housing supply measures, and cost-of-living relief. Government members argued the reforms address intergenerational inequality and improve housing affordability, while opposition members claimed the changes punish aspiration, break election promises, and harm regional communities and small businesses. Independent member Helen Haines supported some reforms but urged greater consultation and highlighted underfunding in regional health and infrastructure.

Outcome

The debate was adjourned.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Continued the debate

Jarrett argued the budget addresses intergenerational inequality by reforming the tax system to favour first home buyers over investors. Jarrett highlighted $64 billion in savings, tax cuts for workers including a $250 offset and $1,000 instant deduction, and a fuel tax cut. Jarrett stated that limiting negative gearing to new builds and replacing the capital gains tax discount with inflation indexation would unlock 75,000 homes for first buyers. Jarrett emphasised that the budget strengthens Medicare, supports higher wages, and manages debt responsibly compared to the previous government.

Government response

Khalil argued the budget made hard decisions to fix a distorted tax system that favoured asset investment over productive work. Khalil stated that replacing the capital gains tax discount with indexation and restricting negative gearing to new builds would help 75,000 first-home buyers. Khalil highlighted tax cuts for workers, including a $1,000 instant deduction and a $250 working Australian tax offset. Khalil also noted $3.5 billion in tax relief for small businesses and $59.4 million for youth housing to address homelessness.

Opposition response

Chester argued the government had misled voters by breaking promises not to change tax settings, creating a deficit of trust. Chester claimed the budget would lead to a reduction of 35,000 in the number of homes constructed and increase rents. Chester highlighted negative impacts on regional Australia, including cuts to the Future Drought Fund and agricultural preparedness programs. Chester warned that capital gains tax changes would force farming families to sell land or abandon succession planning due to high tax bills.