Labor government to focus on increasing ‘productivity’ in federal budget

Added: 2026-05-16

[00:00:00]Jim Chalmers is paving the way for tax hikes on housing investments and trusts ahead of the May budget. According to the Australian, the treasurer says it's a concern for workers who he says are treated differently to people generating their income from assets. He's expected to announce a $20,000 instant tax write-off, which will be permanent for small businesses in the upcoming budget, as reported by the Herald Sun. Shadow Treasurer Tim Wilson believes the government is making it harder for Australians to buy a home.

[00:00:31]I'm expecting a lot more taxes, a lot more limitations on how young Australians will be able to work hard to save, to be able to buy their own home, and all on the false flag that if we add more taxes, it's going to lead to building of new homes. In fact, the data increasingly seems to show that with what they're proposing on negative gearing, it will increase rents.

[00:00:54]Changes capital gains will actually lead to founder flight. That's certainly something some people are warning about.

[00:01:03]The government is focusing on increasing productivity while managing global economic turmoil.

[00:01:09]You will see prudent fiscal management in this budget as you have in all the budgets that we have handed down, but there'll also be a focus on the cost of living and and meeting those challenges that Australians face, as there will also be a focus on productivity.