David 'Kochie' Koch unloads on Labor tax shake-up: 'Why would Australians work harder?'

By SARAH BROOKES - SENIOR REPORTER, AUSTRALIA Published: 22:41, 24 May 2026 | Updated: 22:57, 24 May 2026 Young Australians trying to save for a first home are being warned there may be even less reason to work harder and invest under Labor's sweeping tax overhaul. Financial commentator David Koch said the Federal Budget did little to reward Australians who work hard. 'There's nothing there to encourage earning more income, working harder, or improving productivity,' he said. 'Australian personal tax rates are still some of the highest in the world, with revenue from personal income tax still at record highs. 'Tax thresholds really haven't been changed at all. So what incentive is there to work harder? We need that to help fight inflation.' Under the changes, the current 50 per cent capital gains tax discount would be abolished and replaced with an inflation-indexation system, while the Albanese government would also introduce a 30 per cent minimum tax on net capital gains. The reforms would affect investors in shares, exchange-traded funds, managed funds and property, alongside business owners, startup founders and employees with equity schemes. Koch said the reforms meant that, 'by a country mile', superannuation funds and owner-occupied homes were now the best places for the average Australian to invest. Financial commentator David Koch (pictured) criticised the Albanese government's Federal Budget for providing little incentive for people to work harder Jim Chalmers (pictured) addresses the National Press Club after handing down his fifth budget 'The family home remains capital gains tax free, while the CGT discount is being wound back on other investments, and superannuation continues with its 15 per cent earnings tax and concessional treatment,' he said. 'So, tax-wise, by far the best places to invest your money are your own home and your super.' The changes may also accelerate a shift towards saving through superannuation under the First Home Super Saver Scheme, which allows first‑home buyers to build a deposit in a lower‑tax environment.  Contributions are taxed at just 15 per cent, and people can later withdraw up to $50,000 of their voluntary contributions to use as a home deposit.  However, many argue this is a small change compared to the deposits required, with median house prices in Perth, Sydney, Brisbane, Melbourne, Canberra and Adelaide all exceeding $1million.  Stockspot founder Chris Brycki said the changes could hit younger Australians trying to save for a first-home deposit through long-term investing. Someone who grew a $25,000 ETF investment into $40,000 over five years would keep about $2,164 less after tax under the proposed rules, according to Stockspot modelling. 'For younger Australians trying to build a first home deposit through disciplined long-term investing, that alone could delay reaching the same property goal by another 9-12 months,' Mr Brycki told the Daily Mail. Stockspot's Chris Brycki (pictured) says for a generation already struggling with housing affordability the tax changes push the dream of home ownership even further out of reach 'For a generation already struggling with housing affordability, rising rents and slower wage growth, this pushes the dream of home ownership even further out of reach. 'This is hardly a win for aspiring young homeowners.' No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.