<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australians are set to be hit by major tax changes, including losing access to a popular concession, in this year's </span><a href="https://www.9news.com.au/federal-budget" rel="" target="_blank" title="federal budget"><span>federal budget</span></a><span>, which is shaping up to be one of the most significant in decades. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Treasurer Jim Chalmers has pledged to </span><a href="https://www.9news.com.au/national/treasurer-jim-chalmers-delivers-grim-forecast-in-pre-budget-speech-as-he-touts-ambitious-reform/fda1a3f1-a9b1-4382-a7f1-e441a4bf0abf" rel="" target="" title='deliver an "ambitious" set of national accounts'><span>deliver an "ambitious" set of national accounts</span></a><span> on May 12 in the face of global conflict and rising inflation, while also saying the economy is being held "hostage" by the war in Iran.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The budget is set to contain three central packages — tax reform, spending savings, and productivity and investment — that are set to address the intergenerational inequity issues younger people are facing.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Here is what you can expect when Chalmers delivers his budget later this month.</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/groceries-prices-inflation-coles-woolies-supermarket-prices/a0b3c54b-ac98-41cd-9132-879fe1663b42"><strong><span>You're not imagining it, the price of your groceries is soaring</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Tax reform </span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/national/prime-minister-anthony-albanese-dances-around-tax-changes-as-opposition-quashes-support/65944289-9204-4c5b-8221-79d5404f56bc" rel="" target="" title="government has been dancing around exactly what tax reform it will hand down"><span>government has been dancing around exactly what tax reform it will hand down</span></a><span>, but two of the measures that are at least on the table are changes to the $22 billion-a-year capital gains tax (CGT) discount and negative gearing.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/federal-budget-2026-what-to-expect-signficant-changes-announcements-explainer/94106a49-6102-447d-bb6a-53aabc1d4a5f" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Critics have blamed the combination of the policies for contributing to the housing crisis, with a Greens-led Senate inquiry earlier this year finding the </span><a href="https://www.9news.com.au/national/federal-budget-2026-government-hint-changes-capital-gains-tax/938c783c-4361-4c06-bde7-bc3168cd2016" rel="" target="_blank" title="CGT discount is flawed and benefits investors over first-home buyers"><span>CGT discount is flawed and benefits investors over first-home buyers</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>An Oxfam report earlier this year found </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-24000-millionaires-pocketed-half-the-gains-oxfam-australia-finds/d08e4b7a-1814-460c-b697-654ecd3cd517" rel="" target="" title="nearly half the beneficiaries of the CGT discount were 24,000 of Australia's richest people"><span>nearly half the beneficiaries of the CGT discount were 24,000 of Australia's richest people</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The specific reforms, including whether grandfathering provisions will be included for investors who are using the discount and negative gearing, are still a bit of a mystery.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The government hasn't confirmed the changes, but has repeatedly failed to rule them out when given the chance, with Chalmers and Prime Minister Anthony Albanese instead saying the budget will tackle intergenerational unfairness in the tax system and housing market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"What we are determined to see is a fairer economy that works for more people, including for younger people," Chalmers said this week.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If reformed, it would be the first time the CGT discount is rolled back since the Howard government raised it to 50 per cent in 1999 and the first time negative gearing is changed since it was temporarily limited by the Hawke/Keating government in 1987. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In his pre-budget speech in March, Chalmers said the tax reform package would also make the system simpler and sustainable and drive business investment but only "if we can afford to". </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"How much of that we can do in May depends a bit on fiscal considerations, international developments, and also, of course, cabinet deliberations," he said at the time.</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/most-australian-workers-expect-a-pay-rise-seek-survey/6dd0a578-ae8b-4d03-93fd-542d2c4ed8f9" rel="" target="" title=""><strong><span>'Expectation gap': The Aussie workers most likely to gain a pay rise</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>NDIS cuts </span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Health Minister Mark Butler announced </span><a href="https://www.9news.com.au/national/ndis-changes-what-we-actually-know-about-overhaul-explainer/1d5ac093-7675-4197-9a3b-9950b890e3f0" rel="" target="_blank" title="$15 billion would be cut from the National Disability Insurance Scheme"><span>$15 billion would be cut from the National Disability Insurance Scheme</span></a><span> (NDIS) over the next four years to clamp down on ballooning costs and prevent it from becoming "an ATM for shonks, grifters, fraudsters and crooks".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Changes include tighter criteria, standardised and evidence-based assessments, fraud prevention and reduced spending on social and community participation per participant and daily activities.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Initial modelling shows the changes will reduce the number of people on the NDIS from 760,000 to 600,000 by the end of the decade. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It costs too much and is growing too fast," Butler said in April.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We can't afford for the NDIS to continue growing at its current rate."</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/man-accused-of-killing-labor-strategist-to-fight-charge/69e58030-c730-4cea-b07e-23f412293caa"><strong><span>Man accused of killing Labor strategist to fight charge</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span></span><strong><span>Defence boost</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/defence" rel="" target="" title="Defence"><span>Defence</span></a><span> will receive an additional $53 billion over the next decade, increasing spending to 3 per cent of Australia's GDP by 2033 under the NATO methodology.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>US President Donald Trump has been pressuring Australia and NATO countries to raise their defence spending, complaining that the US does a lot of the heavy lifting.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The funding boost, announced last month by Defence Minister Richard Marles, was partly paid for by the </span><a href="https://www.9news.com.au/national/australian-defence-force-to-sell-historic-victoria-barracks-major-assets/a10082a9-97a9-4507-9f36-155bc48ead50" rel="" target="_blank" title="sale of military land"><span>sale of military land</span></a><span> and will deliver greater warfare capabilities, systems and communications.</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/finance/inflation-data-australia-march-2026-quarter-interest-rate-implications/575bc24a-ead7-4abd-a49c-b9c9753af93c"><strong><span>The news no Aussie wanted to hear - and it could get worse</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Cheaper fuel</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal government halved the fuel excise and removed the Heavy Vehicle Road User Charge from April 1 to June 30 to provide some relief for motorists facing </span><a href="https://www.9news.com.au/petrol-prices" rel="" target="_blank" title="soaring fuel "><span>soaring fuel</span></a><span> costs, which will be funded in the budget.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The measure was estimated to reduce fuel costs by 26.3 cents per litre and almost $19 on a 65-litre tank.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australian Competition and Consumer Commission is monitoring fuel prices across the country to ensure the cost savings are being passed on.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>More announcements </span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><a href="https://www.9news.com.au/national/federal-politics-instant-tax-deduction-to-be-enshrined-in-law-jim-chalmers/dba7a95c-069c-43bd-92c7-8be822bb4475" rel="" target="_blank" title="$1000 instant receipt-free tax deduction"><span>$1000 instant receipt-free tax deduction</span></a><span> for work-related expenses for about 6.2 million workers.</span></li><li><a href="https://www.9news.com.au/national/private-health-insurance-rebate-older-australians-to-pay-more/da5367d6-3c0f-4225-b89e-50eb90498b03" rel="" target="_blank" title="Reducing the private health insurance rebate"><span>Reducing the private health insurance rebate</span></a><span> for those over 65 to the same level as everyone else.</span></li><li><span>New Payday Super rules mandating employers pay superannuation at the same time as salary and wage payments will come into effect from July 1.</span></li></ul></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><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></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"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>