Millions of young Aussies have been locked out of tax breaks that previous generations – and the Prime Minister – has enjoyed.

The Albanese government has abolished the 50 per cent tax discount on all asset classes, including the stock market and existing property investments in the Federal Budget handed down on Tuesday night.

Anthony Albanese has been accused of hypocrisy by scrapping the tax benefits that he used to build his extensive property portfolio.

‘The majority of people who negatively gear are under 40,’ Shadow Assistant Minister to the Opposition Leader, Simon Kennedy, told Sky News.

‘We are taking away opportunities for these people to grow their wealth that I have, that the Prime Minister is probably actively using now.

‘We’re taking away lower tax treatment from them. What we’re doing is increasing taxes on (young people). They will now pay the top marginal tax rate when they sell their investment property. They will no longer have negative gearing.

‘We’re going to tax this generation even more. Now the hide of somehow dressing this up as solving intergenerational inequity when they will pay more tax tomorrow than they did today… that’s the fact of this budget.

‘There are loads of things we can do to lower the tax burden on young people, but what the Labor government is going to do is increase the tax burden on young people, rig the system further against them.

‘I’ve benefited from CGT discount. I’ve invested well, no young person will ever have those tax benefits that I had or that the prime minister is probably actively using now.’

Pictured is Anthony Albanese’s clifftop Copacabana property on the NSW Central Coast. He purchased the property in 2024 and is renting it out to tenants.

The Australian Taxation Office is set to significantly expand its workforce, adding nearly 1,500 staff as part of a broader push to crack down on fraud and strengthen the integrity of the tax system.

Budget papers show the ATO’s headcount will climb from 19,938 to 21,410 over the next financial year.

Treasurer Jim Chalmers told the Daily Mail additional staff will underpin a new wave of compliance activity and fraud detection measures, as the government intensifies its efforts to close gaps in the system.

Prime Minister Anthony Albanese has hit back to criticism that his government has scrapped the very tax arrangement that allowed him to grow his own property portfolio.

His government has abolished the 50 per cent tax discount on all asset classes, including the stock market and existing property investments in the Federal Budget handed down on Tuesday night.

There are also changes to negative gearing, which allows investors to offset a loss-making property against other income.

Investors who purchase existing homes after Budget night will only be able to use negative gearing until July 1, 2027.

Albanese was grilled on the reforms when he appeared on Sunrise on Wednesday.

Host Nat Barr read out a comment from viewer Lee, who pointed out that Albanese built his property portfolio through negative gearing and that he had taken the opportunity away from millions of young Aussies.

‘No, but they can invest in a new build though,’ Albanese responded.

‘What they’ll be doing is not just helping to build their own portfolio, they’ll be helping to build homes that other young people will be able to move into and rent and boost supply as well.

‘So they’ll be able to do that in exactly the same way. They can even choose the old system of capital gains of a 50 per cent discount if they choose to do so.’

Sunrise co-host Michael Usher pointed out that the property market is very heated and much different compared to when the Prime Minister, along with many others were able to invest and use negative gearing.

‘That’s that’s the whole point of why we’re making this change. You’ve just said it’s a very different market. That’s the point,’ Albanese said.

‘We’re throwing everything at this to make a difference because it has got tougher.

As time has gone on, it’s got tougher and tougher for young people to enter the housing market, which is why we’re making this change.’

He acknowledged there would be heavy backlash over the decisions made.

‘I knew there would be a bit of blowback on this, I’ll put why we’re doing it, but gee, it’s the right thing to do,’ he said.

More than 160,000 Australians will be kicked off the NDIS as the scheme’s costs blow out of control.

The Albanese government confirmed that changes to eligibility rules would seek to lower the number of Australians on the scheme from 760,000 to 600,000 by 2030.

The scheme has previously been projected to cost about $49billion this financial year – and is now more expensive than Medicare.

The government is now aiming to divert children with autism who have low to moderate support needs onto the Thriving Kids program.

In his Budget, Treasurer Jim Chalmers announced that $2billion would be used to deliver the program, with funding to be matched by states and territories.

The government has also invest $3billion over five years to establish Foundational Supports outside the NDIS, with funding to be matched by states and territories.

The overall reforms announced in the Budget are expected to save a total of $37.8billion over the next four years.

Up to 13million workers are set to benefit from a cash boost of up to $2,800 as part of major cost-of-living measures announced in the Federal Budget.

Two tax cuts are kicking in this financial year. Treasurer Jim Chalmers confirmed on Tuesday night that a new tax offset, and a further deduction, would kick in from July 1, 2027.

That will see the average Australian save about $2,800 in tax from mid-2027.

Australians are divided over the Albanese government’s Federal Budget, with many taking issue with the changes to negative gearing and the capital gains tax.

Negative gearing allows investors to offset a loss-making property against other income, such as wages. This reduces the owner’s taxable income, sometimes pushing them into a lower tax bracket.

Investors who purchase existing homes after Budget night will only be able to use negative gearing until July 1, 2027.

Those who owned a home prior to Budget night will not be affected.

Investors who buy a new house or apartment after Budget night will be able to negatively gear the property until they sell it.

They will also have the option of using the 50 per cent capital gains discount when they sell, or using the pre-1999 model when the discount was indexed to inflation.

Under the previous rules, investors only had to pay tax on half their profits on sale. Now, the tax will be indexed to inflation and apply to the sale of any asset – including stocks and property.

Aussies were quick to call out the policy on X.

‘This is about increasing dependence on government, punishing people for trying to get ahead and reducing class mobility,’ one said.

‘Albo already made his bag off property and is now kicking the ladder out underneath aspirational young people.’

‘Gone are the days where Australians could have a dream and work hard and sacrifice to make it a reality. This government has done nothing except take and take and rather than fix the systemic economic issues to fix cost of living issues etc, they further distort the tax system,’ another wrote.

‘How does an investor buying a new build for CGT benefits help a first home buyer? Is it because a renter will rent a newly built house and the first home owner buys an established dwelling? Doesn’t make a lot of sense,’ a third said.

Jim Chalmers responded live on air to Kath, a school teacher, who said: ‘My husband and I, two school teachers, negative gearing was one way we could get ahead.

‘You lied to get votes. Shame on this government. Crushing dreams and telling lies.’

He told Sunrise host Nat Barr: ‘First of all, Kath, if you’re negatively gearing, you can continue to do that. And if you want to negatively gear some more, you can do that for a new property. That’s the first point. Now on the politics of the last election.

‘I do understand that people who don’t want to change these arrangements, people who think that the housing market and the tax system is operating just fine as it is, they will focus on the comments and the commitments we took to the last election.

‘I want to be really up front with your viewers, Nat, we’ve come to a different view on these policy areas. Our comments and commitments at the election reflected an overwhelming focus on supply. We’re still very focused on supply, but we’ve come to a different view here. And that’s why I’m on your show explaining why we have.

‘And that’s because it has become too hard for Australians, particularly younger Australians, to buy their first home. And that’s why we’re making these changes.’

Daily Mail Political Editor Peter van Onselen breaks down what Anthony Albanese’s government is giving YOU in the Federal Budget.