Australia's lower house passes bill for biggest overhaul of taxes in decades

Sydney: Australia's lower house of parliament passed a ​bill on Thursday ​for the government's biggest overhaul of taxes in ​decades, curbing tax breaks for property investors to make housing more affordable and scrapping a capital gains discount.

The measure cleared the House ‌of Representatives ⁠94-48 ⁠after failed amendment bids by the opposition and some independents. Some businesses ​had urged the government to exempt them from the capital gains ​overhaul and confine changes to real estate.

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"Passed the House: tax cuts for every worker and a fair ​go for first home buyers," Prime ⁠Minister Anthony ‌Albanese said on X.

The measure now goes ​to the ​Senate, where the government lacks a majority ⁠and will require crossbench support.

The reforms, unveiled ​in last month's federal budget, will see a ​tax on inflation-adjusted gains replace a capital gains discount of 50% for assets held longer than a year. A 30% minimum tax on net capital gains will start from July 2027.

The bill aims to ‌limit negative gearing to newly built homes so as to steer capital toward new housing supply, narrowing a rule that ⁠lets investors offset property losses against taxable income.

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The bill also gives workers a new tax cut, through a tax offset of ​A$250 and a new instant tax deduction of A$1,000 ($710). These will be in addition to already legislated tax cuts giving annual savings of up to A$536 to individual taxpayers.