Chalmers admits political cost of CGT changes; small NSW quakes

Treasurer Jim Chalmers said the government has lost some "political paint" after scaling back capital gains tax and negative gearing reforms, but insisted the moves were necessary. He argued the choice was between the easier political path and doing what is right for first home buyers, young people and workers, and said Labor had prioritised getting policy and substance right over short-term politics because the tax system and housing market are broken.

Chalmers said the carve-outs to the CGT discount, which will help about 2.7m small businesses, followed further consultation after the budget. He described the adjustments as providing more certainty for investors, support for small business, stronger incentives for innovation, and measures intended to make it easier for people to buy a first home and better align the tax treatment of labour and asset income.

Geoscience Australia recorded two small earthquakes in New South Wales this morning.

Australia, New South Wales

jim chalmers, capital gains, cgt discount, negative gearing, small business, first home, housing market, tax system, nsw earthquakes, investors