A new poll has dealt a major blow to Anthony Albanese’s government, with voters saying the federal budget has damaged trust and left many believing their families will be worse off.

The Freshwater Strategy survey, conducted for the Daily Telegraph, revealed a strong backlash to last week’s budget, driven largely by Labor’s changes to negative gearing, capital gains tax and trust taxation.

Under the reforms, the government would tighten negative gearing rules, limiting the ability of property investors to offset losses against taxable income. 

It would also overhaul capital gains tax by scrapping the long-standing discount and instead taxing gains above inflation, with a minimum 30 per cent rate from July 2027.

A clear majority of Australians believe the Prime Minister has broken a key election promise.

According to the poll, 54 per cent of voters said the government had broken its commitment not to alter negative gearing during the last election campaign and should have taken the policy to voters. Overall, 83 per cent said some form of promise had been broken.

The fallout appears to have hit confidence in the government hard.

Almost half of voters said the changes had reduced their trust in the government, with 31 per cent reporting a significant decline and 14 per cent saying trust had fallen slightly. By comparison, just 12 per cent said their trust had increased.

Almost half of voters say they have lost trust in the Albanese government over the budget 

Dissatisfaction with the budget is widespread.

Forty-seven per cent of voters say they are dissatisfied with the 2026 federal budget, including 28 per cent who are very dissatisfied.

By comparison, only 18 per cent say they are satisfied, with just 4 per cent reporting they are very satisfied.

Voters also believe the budget will hit their hip pockets.

While 44 per cent say it will leave their household worse off, only 13 per cent expect to be better off, underscoring persistent cost-of-living anxiety.

Confidence in the broader economy has also weakened.

Forty-six per cent of voters believe the budget will worsen the economy, compared with just 21 per cent who say it will improve conditions.

Notably, 23 per cent expect economic conditions to deteriorate significantly.

61 per cent of Australians believe the government will introduce new taxes in the future 

A strong majority, 58 per cent, believe the budget will increase the likelihood of another interest rate rise, while only 10 per cent think it will reduce that risk.

Labor’s housing tax changes have also failed to convince voters that they will deliver meaningful reform.

More Australians disagree than agree that the adjustments to capital gains tax and negative gearing will improve housing affordability, with 39 per cent rejecting the claim compared with 25 per cent who support it.

Adding to the political pressure, 61 per cent of voters expect the government to introduce further tax changes before the next election.

Albanese has repeatedly refused to say whether he has broken a pre-election promise in the federal budget, insisting instead the government has ‘changed our position’. 

‘If a young person is going to an auction today, unlike last week, the investor who is bidding against someone who wants to live in that home as their first home won’t have the taxpayer by their side subsidising their bids,’ he said.

‘But these changes will make a difference. They are aimed fairly and squarely at providing additional opportunities for young people to own their own home.’