03/06/2026
Comedian Dave Hughes has launched a strong attack on the federal government over its proposed changes to capital gains tax (CGT) and negative gearing, claiming the latest budget has “tipped Australia over the edge” and left Australians “angry like I’ve never seen before”.
The longtime Labor supporter, who was also a vocal critic of the Victorian government during the Covid era, has surprised many fans with a series of recent videos sharply criticising Prime Minister Anthony Albanese and Treasurer Jim Chalmers.
Speaking to news.com.au, Hughes said last month’s budget was the final straw for him, despite supporting Labor at the last election.
“I’m walking down the street every day now and people are saying, ‘keep going’,” he said. “It’s unbelievable. People are angry. Anyone who owns a business is angry, no doubt about it. There are no businesses that think this is a good idea.”
Hughes joins a growing number of business leaders and commentators who argue the proposed changes to CGT and negative gearing will discourage investment while doing little to solve Australia’s housing crisis.
The reforms currently before Parliament, which Labor has described as the biggest overhaul of Australia’s tax system in 25 years, would replace the existing 50 per cent capital gains tax discount with an inflation-indexation model. They would also restrict negative gearing, which currently allows property investors to offset rental losses against other income, from July 1 next year.
Under the proposal, capital gains tax would also be subject to a minimum rate of 30 per cent, up from the previous minimum effective rate of around 16 per cent for those earning less than $45,000 annually.
Capital gains tax applies to profits made from the sale of assets held for more than 12 months, including property, shares, businesses and cryptocurrency investments.
At present, taxpayers pay CGT at their marginal tax rate after applying the 50 per cent discount. For high-income earners facing a top marginal tax rate of 47 per cent, this effectively limits the maximum CGT rate to 23.5 per cent.
The proposed indexation system would remove that cap, meaning investors whose assets increase in value significantly above inflation could potentially face an effective CGT rate approaching the full top marginal rate of 47 per cent.
Treasurer Jim Chalmers introduced the tax reform package to the House of Representatives on Thursday as part of a broader omnibus bill. The government is continuing discussions around possible exemptions for small businesses and start-ups.
Housing Minister Clare O’Neil has dismissed much of the criticism as “completely out of proportion”, although she acknowledged it would be beneficial for consultations regarding potential exemptions to be concluded as quickly as possible.
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