Arabic version: الميزانية الفيدرالية لمعالجة أزمة الإسكان وزيادة إيرادات الغاز

The federal budget, set to be delivered on Tuesday, will feature an increase in forecast revenue from the petroleum resource rent tax (PRRT), according to ABC News. Treasurer Jim Chalmers announced that the tax on offshore gas projects has raised more revenue than expected this year, as the government aims to tackle a “broken” housing market and tax system.

Chalmers is expected to propose significant changes to the 50 percent capital gains tax discount and negative gearing, a move he acknowledges carries “a lot of political risk.” He stated, “The status quo in the housing market and in the tax system is broken. It is locking out too many Australians and we’re not building enough homes.”

Shadow Treasurer Tim Wilson criticized the anticipated changes, arguing they would adversely affect young and older Australians without providing adequate benefits in return. He expressed skepticism about the government’s approach to reforming the housing market and tax system.

The budget will also allocate an additional $2 billion to build infrastructure including water, power and sewerage for housing developments, which is projected to unlock 65,000 new homes over the next decade. Labor is currently behind its goal of building 1.2 million homes by 2029.

While the government previously considered a windfall tax on gas companies, Prime Minister Chalmers has decided against it, citing concerns over the impact on trading partners. However, he indicated that the PRRT will see an upgrade in revenue forecasts, reflecting the government’s commitment to managing gas market dynamics while addressing community concerns about gas taxation.