<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Tuesday's </span><a href="https://www.9news.com.au/national/federal-budget-2026-what-to-expect-signficant-changes-announcements-explainer/94106a49-6102-447d-bb6a-53aabc1d4a5f" rel="" target="_blank" title="federal budget"><span>federal budget</span></a><span> is shaping to become a major shake-up for the Australian economy, with major reforms in housing a wealth driver for millions of people.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Treasurer Jim Chalmers told Nine Chief Political Editor Charles Croucher on </span><em><span>Weekend Today</span></em><span> this morning the "status quo is not working" in the housing market, and flagged changes in the capital gains tax and negative gearing this week.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Croucher put it to the treasurer that the upcoming budget comes 40 years after then treasurer Paul Keating warned that Australia was at risk of becoming a "banana republic" due to a massive collapse in export prices and spiralling foreign debt.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/federal-budget-2026-negative-gearing-changes-what-is-it-everything-you-need-to-know/c37e11e6-9cdb-4420-b3fc-fcf908df8d67" rel="" target="_blank" title="Major crisis facing Liberals after 'good old-fashioned flogging' at Farrer by-election by One Nation"><strong><span>Major crisis facing Liberals after 'good old-fashioned flogging' at Farrer by-election by One Nation</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We're now looking at a trillion dollars' worth of debt some time later this year ... that speech was a line in the sand it shook the way Australians think," Croucher said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers answered by saying there would be "more than the usual amount of change".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There's more than the usual amount of change .. and more than the usual amount of anxiety about how our economy is playing out."</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/federal-budget-2026-major-reforms-make-for-another-banana-republic-moment/92b24eee-94c3-446f-b595-75541e9f15c7" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Hinting at capital gains tax changes, the treasurer also said while housing supply has to be the "main game" for fixing the housing crisis it should not end there</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Even though the problem in the housing market begins with supply, it doesn't end there. ... the status quo and the tax system and the housing market is unfair ... there are too may people locked out and not enough homes," Chalmers said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/federal-budget-2026-negative-gearing-changes-what-is-it-everything-you-need-to-know/c37e11e6-9cdb-4420-b3fc-fcf908df8d67" rel="" target="_blank" title="Negative gearing set to undergo first change in nearly 40 years. Here's what you need to know"><strong><span>Negative gearing set to undergo first change in nearly 40 years. Here's what you need to know</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Negative gearing is when an investor has expenses associated with a property, like interest on mortgage repayments, that are greater than the profit it makes. Investors are then able to deduct many of those expenses from their taxable income, meaning they pay less during tax time. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers also announced today the budget will include an extra $2 billion over four years for infrastructure spending on roads, water, power and sewerage, that will help build up to 65,000 new homes.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The money will be given to councils and state utility providers, with $500m of the funds earmarked for regional and country areas.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank" title=""><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>