<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Paul Keating has come out in defence of the federal government's tax reform in a scathing statement, which has been dismissed by the opposition as "nonsense".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The former prime minister - who introduced mandatory superannuation, and as treasurer oversaw the introduction of the capital gains tax - said the proposed </span><a href="https://www.9news.com.au/national/federal-budget-2026-what-capital-gains-tax-and-negative-gearing-changes-mean-for-rents-housing-prices-and-supply/30abbf82-e8f5-4833-ad2e-41c45b337fda" rel="" target="_blank" title="changes to the capital gains tax, negative gearing and discretionary trusts"><span>changes to the capital gains tax, negative gearing and discretionary trusts</span></a><span> are structurally sound.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"When Jim Chalmers announces a policy principle to restore the equity of taxing capital profits on a basis of equality with the taxation of income - we hear the howls for continuing preference," he said.</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><a href="https://www.9news.com.au/finance/australia-unemployment-rate-rises-in-april-2026/594c818c-899e-4b83-afd5-cc3a8d1eb3a6" rel="" target="_blank" title=""><strong><span>Unemployment rate jumps in surprise result</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The simple fact is that income is taxed too heavily while capital is taxed too lightly."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Opposition Leader Angus Taylor said the remarks were merely "more nonsense from Paul Keating".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Of course, Paul Keating supports it but frankly I'm not going to be lectured to by someone who thinks putting Australian values at the centre of our immigration policy is racist," he told reporters this morning.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/paul-keating-support-of-federal-budget-opposition-reacts/cfe06484-6b5d-415f-b2b4-43235f7e27e5" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Nationals Senator Bridget McKenzie told </span><em><span>Today</span></em><span> "you know something's wrong when you have to wheel out Paul Keating to stick up for your budget".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Keating's support comes as the government faces an onslaught more than a week after handing down the federal budget.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/anthony-albanese" rel="" target="_blank" title="Prime Minister Anthony Albanese"><span>Prime Minister Anthony Albanese</span></a><span> and Treasurer Jim Chalmers have been fielding criticisms of the changes during their nationwide campaign to spruik the budget.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/federal-budget-2026-what-capital-gains-tax-and-negative-gearing-changes-mean-for-rents-housing-prices-and-supply/30abbf82-e8f5-4833-ad2e-41c45b337fda" rel="" target="" title="Forty businesses signed an open letter"><span>Forty businesses signed an open letter</span></a><span> saying the capital gains changes were an "aspiration ambush", while some concerns were raised from within their own party.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chalmers told reporters yesterday there has been "misinformation" about the budget.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/shark-warning-sydney-beaches-great-whites-bull-sharks/c8258837-91b3-400e-9335-17c347f7633b" rel="" target="_blank" title=""><strong><span>Beach-loving capital warned of perfect storm for sharks</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The four existing concessions and carve-outs for small business in the CGT system will remain, and people like our political opponents who want to make up things about our changes don't acknowledge that, but they should," he said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The treasurer has also been reiterating that there is a one-year grace period before the CGT changes come into effect, consultation with the start-up sector and support for businesses who want to restructure their discretionary trust to a fixed trust.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The last time the capital gains tax was altered was when the Howard government introduced the 50 per cent discount.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Keating, in his statement, said Howard and his treasurer, Peter Costello, made a significant mistake by introducing the discount.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Housing prices took off dramatically from the moment Howard and Costello introduced the 50 per cent discount in 1999," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Yet wealthy people are out there now arguing against the government's change notwithstanding the stark evidence of the price shock Howard and Costello induced."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Keating concluded his statement by saying the current government is seeking to arrest the distortion that has made housing unaffordable for an entire generation. </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 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