Opposition parties have intensified their attacks on the Federal Government’s 2026-27 Budget, with the Coalition and One Nation targeting the government’s housing tax reforms, migration settings and rising public debt.
Shadow Treasurer Angus Taylor said the Coalition would fight the proposed tax changes in parliament, describing them as harmful to housing supply and living standards.
“Our position is we’re going to do everything we can to stop these bad taxes, toxic taxes, from getting through the parliament. This is a budget of broken promises and higher taxes and less houses and lower standard of living, and we don’t want these taxes to get through because they are a tax on aspiration, a war on aspiration. They’re not going to solve any intergenerational problem,” Taylor told Sky News.
The Budget includes major changes to negative gearing and capital gains tax concessions aimed at encouraging investment into newly built housing while improving access for first-home buyers.
Taylor argued the government had failed to improve housing construction despite large spending commitments.
“We’ve seen a reduction in the number of houses getting built in this country despite billions of dollars of expenditure … there’s no shortage of areas where this government is spending and shouldn’t be spending, but because it’s spending this money, it’s whacking Australians with more taxes … when the government runs out of money, it comes after yours. And that is exactly what’s going on here,” he said.
He also described the Budget as “a complete intergenerational fraud”, accusing Labor of dividing Australians by age while increasing taxes.
“Australians don’t want that kind of division. They don’t believe in it. We saw that during the Voice [to parliament referendum]. Labor thinks the answer to things is to divide Australians. Well, I think it’s to unite them,” Taylor said.
One Nation Senator Sean Bell focused on migration levels, arguing the Budget revealed a larger-than-expected population increase.
Australia is bracing for a major population surge, with Budget figures revealing nearly 765,000 permanent migrants will arrive over the next three years, despite repeated promises to rein in the numbers:
One Nation Senator Sean Bell
“Australia is bracing for a major population surge, with Budget figures revealing nearly 765,000 permanent migrants will arrive over the next three years, despite repeated promises to rein in the numbers,” Bell said.
Pauline Hanson questioned why the government’s capital gains tax changes extended beyond residential housing.
“If this is all about housing for young people then why are all our other assets being included such as shares , commercial property , industrial property what’s that got to do with housing ?” Hanson said on social media.
Hanson also criticised changes affecting family trusts and broader tax policy settings.
“Financial advisers have given clients advice on Family Trusts based on commitments given by this government.
“How can experts give professional advice when governments lie?
“Tonight’s budget rewrites the whole TAX SYSTEM!”
She also argued the government’s tax relief measures would do little to offset rising mortgage costs and inflation pressures.
“15 rate rises means the average mortgage holder is paying $29,000 more per annum so a $250 Working Australian Tax Offset starting from July 2026 does.”
Hanson further criticised the government’s debt trajectory and spending levels.
“Total interest bearing debt will be $300 billion higher by 2030 to $1.3 trillion. When adding off balance sheet liabilities we will be nudging $1.9 trillion.
“Tax revenue will rise by $130 billion out 2029/30. Expenditure by $120 billion. The more the government punishes private sector demand and increase government spending is the opposite of what the RBA Governor has been requesting.”
The government has defended the reforms as necessary to improve housing affordability, strengthen supply and rebalance the tax system, but the Budget’s housing, migration and taxation measures are rapidly becoming a major political battleground ahead of the next election.
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