2026 ALP Budget Tax Changes

29.05.26                      
Economics Legislation Committee
By email only: economics.sen@aph.gov.au

re: Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026

BRN welcomes the opportunity to contribute to this inquiry.

It is often said - the problem with elections is that it is always a politician that gets elected. In Australia many of those politicians are career political activists that have never worked in the private sector. 

Too many Australian politicians have very little genuine understanding regarding work, risk, and job & wealth creation. They often appear to parrot narratives they were taught at school that enable them to be effective in the game of mindless virtue signalling. They have: never opened a business; never had to manage a payroll; never had to get up at 2am to look after a sick cow on a farm; never experienced the pain of running a food business where a bad day leads to the loss of expensive produce; never had to deal with navigating the tens of thousands of laws and obligations foisted onto anyone trying to "have a crack" at getting ahead in their own businesses and lives. How do these politicians even think they have the ability to interfere in the lives and businesses of the people who are creating opportunities for themselves, their families, their workers, their clients, their customers, and their country?

Thus - by necessity - this presentation is political. Fortunately, freedom of political speech is a core right in Australia.

I will present several historical reference points that some readers will find novel and informative. Many have found that the school curriculum in Australia has major gaps: many youngsters have not heard of the Soviet Union; have no idea how core human rights are essential to live in civilised freedom; have no idea that political ideologies have pervaded, in a covert way, all the major institutions of society: law, bureaucracy, politics, education, and media.

This is of course very relevant to the proposed tax reforms proposed in the Bill we are discussing.

What’s The Point Of Working?

The Treasurer wants to tax wealth which brings in income that wasn't "worked" for. At the same time he is happy for young workers to see their incomes secretly stolen by inflation and bracket creep. It seems no-one is allowed to get ahead and no-one gets a fair go. Well - maybe politicians and their families are allowed to get ahead. Their gains from years of negative gearing and capital gains are to be locked in and their “unearned” wealth and perks coming straight from taxpayer pockets remains on tap and rising - regardless of whether their policies make life harder for Australians. For example - by giving away the country’s resources and not protecting its sovereignty.

The whole point of working hard when you're young - making good decisions regarding savings and investments ... and making sacrifices to improve your skills and decrease wasting your money is to have assets providing you with investment related income so you can decrease your work hours and help your loved ones. If there is no effective and reasonable way of doing that people won't bother working hard and smart to build a good life for their families. The country will stagnate and become poorer.

Anthony Albanese has presented a radical change to the tax system without a mandate from the Australian people. In fact, he deliberately lied about his intention to change negative gearing, CGT, and trusts before the last two elections – 2022 and 2025. The proposed changes were defeated when put before voters in the 2016 and 2019 elections. It has been clear for decades the ALP wanted to make these types of changes.

What’s The Point Of Politicians Working?

It is quite obvious that politicians are pushing various agendas that are opposed by the majority of citizens. Another example makes this clear – The Voice. The population as a whole rejects attacks on cohesion and sovereignty - yet many State and Federal politicians push on regardless – with the assistance of the above mentioned captured institutions. These are the actions of authoritarian regimes that have no regard for the wishes and wellbeing of citizens.

For decades the same mantra is trotted out at every election – “schools - roads - health.” Voters don’t believe it anymore. So many youngsters can hardly read and count when they leave school – a key aim appears to just teach them how to vote. Chronic diseases are skyrocketing. The government doesn’t really care. Look at Albanese’s pathetic response on gambling reforms - released when all the key journalists were in the budget lock up! 

In Albanese’s younger years he was a radical - aligned with hard left groups such as the Trotskyists. For many of his fellow travellers the end justifies the means – or in Australia’s colourful political culture - “whatever it takes.” Apart from getting your political goals done this also covers the other core goal - lining your own and your mate’s pockets with ill-gotten gains.

Readers may like to review the recent jailing of a member of the 1970s Baader-Meinhof Group / Red Army Faction - involved in various crimes and terrorist activities, including murder, in pursuit of their goals - a worldwide socialist utopia. They wanted to see a permanent global revolution - one where the masses demanded change because their living conditions had been made unbearable.

In Australia too - activists have been undermining the nation for decades. It is now obvious to many citizens and voters. They are rightly worried – Australia is probably the richest country in the developed world but the worst performer on per capita GDP.

The ALP likes to think the 2025 election was a landslide win. They only got 34% of the primary vote - one of the ALP's worst results ever! Both the major parties will be lucky to get above 25% each in 2028. People really do now know that the major parties are not working for them or their country.

If Australia properly used its Sovereign Monetary System, taxation would operate very differently. Small businesses wouldn't need to be taxed at all. Many Middle East resource rich nations don't tax their citizens. They even receive a payment regularly. These resource rich sovereign states have often created a Sovereign Wealth Fund for the benefit of their citizens and country.

Albanese’s philosophy seems to be coming from a radically ill-informed position. Does he understand that in the Soviet Union the authoritarian corrupt leadership confiscated the bulk of privately owned farmland? It turned out that the 3% that was left in private hands produced 30% of the food. Collectivist farming still managed to lead to famine. Maybe his philosophy goes against human nature. It appears young Anthony was a creation of his 1970s & ‘80s high school and university teachers. It is a pity that the main institutions discourage critical thinking. Like most students – he probably wasn’t taught at the time about Freire, Gramsci, and Marcuse all of whom highlighted the use of education as a tool for ideological indoctrination, aiming to shape the beliefs and values of the younger generation .... to promote the desired revolution.

It is criminal that in a resource rich country keen young university students are paying for their own indoctrination while being saddled with a crippling debt post-graduation. They could have free tertiary education in STEM subjects. It really does seem the government doesn’t care about helping them afford to live and prosper in this country. 

High inflation, rising interest rates, rising unemployment will see people put under unbearable strain – especially the young - with a worsening cost of living crisis. People will be begging for help …. from the government. Conveniently forgotten is that government policies caused the problem and government policies supposed to fix the problem will actually make things worse. The government hopes the youngsters will be screaming for revolution … or at least radical policies to rescue them. This is reasonable to expect when people can’t afford a home and maybe even having trouble affording food and power. 

It is worth noting that official government figures are fraudulent. Real inflation is higher than 10%. Unemployment has been under reported for decades. It will get worse with the coming business failures and AI related entry level job losses.
 
This is all background information – the government wants to justify their “new” tax policies as helping young people. It is just not true – it is an ideological tax grab. Even if Albanese and Chalmers really think it will help in the long term that is totally useless - young people need help now – not two or three generations in the future!

BRN proposes the following to help right now:

1. Let home buyers negative gear.
2. Let rent paid be tax deductible.
3. Abolish Stamp Duty
4. Stop taxing the inflation component of any gains - including interest on savings. [A young person is getting 5% on a term deposit. Inflation is 10%. They're going backwards by 5% and the government wants to tax the "gain." AND that applies now! The new tax changes will see investment gains hit with 30% minimum tax rate regardless what the young investor’s marginal tax rate is. How does a young saver get ahead?]
5. Flatten out the tax tables and index them to inflation – i.e. abolish Bracket Creep.
6. Let all families Income Split. It's just commonsense and fair.
7. Stop taxing small businesses - it is possible with wise use of the nation’s Sovereign Monetary System. A currency sovereign nation produces the currency required. The critical issue is that the amount of currency spent into the economy is not excessive and inflationary.
8. Cut back the numbers of migrants. Only allow in people with genuine skills that Australia needs - earned in countries that we can trust. Australian properties should only be purchased by Australian citizens.

Poor Governance Exposed

The ALP’s taxation proposals are really just part of a well-known long established process of patiently and gradually changing Australia in ways most people do not fully understand or want. Albanese is an activist – always was always will be.
 
From 1788 to 1985 there was no CGT in Australia. What a magnificent country was built in just 200 years! At the same time there were not thousands of pages of laws and taxes that actually hinder nation building. Can you even imagine the building of a nation in 200 years with much of the interference in people’s lives and businesses that is tolerated now? This is not saying that all was perfect in the past. There is definitely a place for wisdom in law making to reduce crime and exploitation.

Collectivism can be opposed easily by any rational analysis but equally disturbing is crony capitalism whereby big business and big government collude to exploit a nation and its people. Worse again, is the system first described by BRN - Coercive Predatory Capitalism (CPC) – the root of all evil: An economic system which creates economic activity of no use or benefit to the people forced to pay for it. This is where Australia is now and is one of the key reasons for the country’s accelerating decline.

The government proposes to allow negative gearing for new builds to “help” young people afford a home. This will not work. New builds are too expensive the costs have been pushed up by years of failed policies. 50% of the cost of new builds are various taxes, levies, and duties – including GST. A young investor going down that route will lose money on the project. The government really seems to be making it impossible to get ahead.

One of the main factors responsible for the inflation and housing crises we now endure was the irrational government spending during the COVID disaster. On top of this have been multiple policies designed to pump up the property market: First Home Buyer grants; 5% Deposit schemes; Stamp Duty exemptions; Help To Buy program; First Home Super Saver Scheme; and - relaxing the Responsible Lending Laws banks are obliged to follow are some examples put in place by both major parties. Turbocharging demand in this manner causes prices to rise – particularly with housing supply not keeping up. High school economics students should know this. It seems many of our politicians don’t.

Getting young people investing in properties that they can’t really afford sets the scene for a subprime crisis and encourages predatory lending by bankers. A property crash would see many new borrowers in negative equity i.e. their house worth less than the loans that they have been encouraged (trapped?) into taking on.

Politicians may not want to see that happen – mainly because they would be crucified at the next election – so as well as continuing with myriad inducements to borrow they choose to pump up the population with excessive and inappropriate immigration. Conveniently, this also creates the illusion that GDP is rising but people know they are going backwards regardless of dodgy figures rammed down their ears by the Treasurer.

If Albanese brings in a million people they need rental or purchased accommodation. One house or unit with an unskilled migrant occupying it is one less house or unit for an Aussie family. No amount of tricky government gaslighting can hide this fact. All this just continues the deliberate and calculated inflation of the property bubble.

Australia does need to attract skilled migrants. The numbers must be appropriate for the housing and jobs available. The housing build required has been made impossible by government ineptitude. Builders are going out of business thanks to the hostile business, regulatory, and investment environment created - and it most certainly will be made worse if the tax policies under discussion right now are ever put into place.

The sort of correction needed in the property market to counter the inflationary policies of the last five to ten years would be about 50%. That is - prices coming down by around half is the only way to really make housing affordable again. 

It is understood that many people don't want the value of their property to decrease. It is important to remember that if yours goes down so does everyone else's. So you sell in a bad market and you buy in the same market i.e. you still have a home. The problem of course is if you have a mortgage, trusted the banks, trusted the government, and thought that the asset pumping policies could go on indefinitely. BRN have previously discussed how the hit to mortgage holders can be reduced by sharing the pain ... with bankers and politicians.

Irresponsible and excessive bank lending - as well as greed & stupidity - have fuelled the unsustainable Australian property market. The Banking Act still contains the Chifley instigated provision that allows the RBA to order the banks to reduce the type of lending that has led to an imbalance – i.e. a bubble. For some unknown reason the RBA just hasn't used it - they seem to have missed the boat on this. In a "correction" the RBA could support the banks to write down their balances on their mortgage loans, to match the new values.

It is quite possible that the government’s proposed tax changes on top of some of their other policies will “accidentally” lead to a property crash. There was a relatively easy way to handle the housing crisis but Albanese and Chalmers seem to have chosen the hard way. This is what happens when unqualified people are put into positions of power.

Spending and Debt

A few examples to show that taxation tinkering is not really the solution. What is required is the reining in of wasteful government spending and the cockamamie programs they fund.

1. AUKUS - $400 Billion being transferred to the Anglo-American empire. This must be axed. A fraction of this money could have been used by Australia directly to improve its defence capabilities. This is an example of a nation being robbed. There is misappropriation and corruption right through this deal. It reeks of Australia’s Sovereignty being trampled on. This is CPC in action. The worldwide arms industry is a cancer that must be eradicated. The peace dividend is unimaginably beneficial for the world’s population.

2. Government and corporate corruption often involves pots of money that are set up and made available to various parasites to loot. Examples where “saved” money is at risk: superannuation funds, corporate profits, investors’ funds, and charities. Money pooled for “spending” that attracts looters includes private building projects, government infrastructure projects, and military spending. Often ex-politicians get involved – particularly in military expenditure. Another recent example is the $15 Billion ripped off Victorian taxpayers via infrastructure projects that happened to be run by criminals. The need for taxes is much reduced if funds already collected are managed with intelligence and care. Why the lack of care that Australians seem to have gotten use to? Moral Hazard - politicians can cause all sorts of damage to citizens and the country but there is no real accountability - until the next election. Their pay and perks are locked in and rise ahead of the CPI while the taxpayers who are forced to pay their salaries are going backwards.

3. Poorly thought out investments and programs related to Net Zero: Electricity rebates; Subsided solar panels and batteries; Government funding and “winner picking” related to “green” energy “businesses” that almost always collapse after millions of dollars of taxpayer money is wasted (stolen/misappropriated). This has cost Aussies Billions of dollars for absolutely net zero benefit to the environment or the economy. Plenty of corporate players and ex-politicians have made big money from this.

The government, of course, says these “programs” help reduce cost of living pressure felt by families. They never say that their policies caused the cost of living pressure in the first place. They waste money to cause the problems and then they waste more money to “fix” the problems. The money for these sorts of schemes and scams should never have been taken from taxpayers.

4. Poorly implemented NDIS and Aged Care Programs. Looking after people that need help is critical in a civilized free society. These programs are being rorted on an industrial scale. Any pot of taxpayer funds is at risk of this. That is why proper governance is required. A wealthy country can afford top class services. A Banana Republic can’t. A clever country uses their Sovereign Monetary System along with a Sovereign Wealth Fund in the best interests of the people.

5. Poorly thought out strategies to “close the gap.” Australia is a very wealthy country with a population of less than 30 Million. If the country wasn’t being fleeced everyone would have access to top class services and infrastructure – indigenous and non-indigenous alike.

It is certainly worthwhile to eliminate any gap where possible but how is it that with Native Title currently covering around 50% of the nation and close to $40 Billion dollars being spent to assist ATSI people there still remain gaps that require closing? This suggests that the groups managing the lands and finances are not doing an efficient or effective job at the task they have been entrusted with. It also suggests that - despite the best of intentions - some gaps, in some regions, are just not able to be closed. It is quite likely that a significant amount of money from this pot is subject to maladministration.

Back To Tax

The perverse incentives and unintended consequences of taxation must be considered. Generally if a government would like to discourage certain behaviours or activities it will tax them. For example – to reduce smoking and alcohol consumption they will tax tobacco and alcohol products (but not too much – the illegal tobacco market clearly shows how excessive taxation can destroy a market).

By simple logic: Stamp Duty will discourage people buying and selling property. Why would someone sell the family home if they have to pay Stamp Duty on a smaller home? Same with Capital Gains Tax – many properties are being kept by families to avoid incurring the tax. An idea worth considering is a full amnesty of CGT and let the market normalise with increased turnover of properties so they can be renovated and put to better use. Zero CGT in New Zealand and Singapore doesn’t seem to be hindering those countries.

The government’s preferred option would be to tax gains on the family home, unrealised capital gains generally, and the bringing in of Death Taxes. Of course when Albanese denies these plans no-one will believe him [Fool me once – shame on you. Fool me twice – shame on me].

Wide ranging taxation reform is definitely needed but it is highly unlikely the government will take it seriously. It is a difficult problem as it has become a political and ideological battle. Some want innovation, diligence, and effort rewarded. Others want everyone made equal. Bearing in mind that people have a degree of freewill and make choices that affect their lives every day - it seems that treating humans like bees in a hive may not lead to optimal outcomes. This is an important issue. Right now our feudal AI-loving techlords and the governments they seem to influence are imposing a cashless, authoritarian, surveillance state on all Western liberal democracies.

The radicals don’t like the idea of people getting ahead thanks to hard work and good fortune. The solution should not be harming people who have done well. It’s about helping the people who may have had bad fortune or hard times that would be difficult to overcome.

Cutting government waste as detailed above and making sure that the common wealth of the nations is used for the benefit of the people of the nation would be a tangible change that would really improve the lives of citizens.

A few more brief points regarding perverse incentives and unintended consequences of a very poorly structured taxation system [More points about taxation reform can be found in BRN Policy No. 16].

1. Property/Land taxes, fees, and duties take away money that could be used by owners to maintain and improve the quality of the housing stock. They also increase the cost of renting and owning a home. In addition they create friction regarding the buying and selling of property. Therefore property up-sizing and downsizing is hindered. In fact - CGT would actually discourage many people and families from actually ever selling certain properties.

It must also be considered that government and banking policies have caused the unfortunate rise in asset prices (shares and property). This rise feeds through to increased land taxes, stamp duties, and CGT obligations. People should not be taxed on the inflation component of any gains - either on their savings or investments. Another good policy would be the forbidding of government and bank machinations that cause inflation.

2. Business taxes remove money that could be used for innovation and productivity gains. These taxes are considered a cost of doing business and are passed onto clients & customers - thus increasing cost of living pressures. A very good case can be made for not taxing small businesses at all.

3. A poorly structured personal taxation system increases the cost of living – thereby decreasing the standard of living; and limits the ability to save. The system also ignores the fact that legal tender is government produced money. The Australian Federal Government is the monopoly issuer of the Australian Dollar ($AUD). A currency sovereign nation produces the currency required. The critical issue is that the amount of currency spent into the economy is not excessive and inflationary. This is an incredible strength of our system - Australia's Sovereign Monetary System. It has not been managed effectively for decades. [More information about this is in BRN Policy No. 2].

4. A large amount of money is wasted on taxation minimisation. A simplified system would see lawyers and accountants freed from no longer required bureaucratic work. These well educated people can be redeployed into other sectors of the economy where their skills can be productively utilised.

5. Way too much time and money is wasted on the game of meeting compliance obligations. This steals the lives and wealth of people forced and coerced into participating in a never ending expensive game of ticking boxes and managing red tape. The hidden damage of a complex and expensive system must be recognised and dealt with. Time spent on government created complexity is time a person could otherwise be: exercising; spending time with loved ones; enjoying hobbies; engaging in their community; gardening; looking after the elderly or the young; thinking; educating themselves; relaxing. People of Australia must realise – government is actually stealing your lives and life-force. This is one reason you are burnt out, stressed, and barely coping. This applies to employees and employers – especially those in small business.

6. A taxation system should be simple, transparent, and predictable. It should not be abused in ways that impede or distort investment and spending decisions. It should not be a dampener of innovation and economic progress. 

7. Taxation must not be abused as a political weapon.

Thank you kindly for your interest in this important issue.