Radical Labor tax blueprint targets landlords, billionaires and business owners in major shake-up

Published: 05:33, 3 July 2026 | Updated: 05:35, 3 July 2026 Radical tax changes are being pushed within NSW Labor, with grassroots members backing plans to wind back property tax concessions, curb negative gearing and introduce a billionaires tax. Labor branches across NSW have pushed for a sweeping tax reforms package that will go before this weekend's state conference before being sent to the federal party for consideration. 'A big-picture, comprehensive, ambitious and meaningful tax reform package is now needed,' The Kensington and Beaconsfield Labor branch said in the 2026 NSW State Conference Policy Committees report. 'The branch calls on federal Labor to commit to undertaking a new white paper into taxation systems across the federation.' One of the key proposals from NSW Labor branches would remove grandfathering protections for existing property investors, exposing them to future negative gearing reforms.  Other proposed reforms include reducing the amount landlords can claim through negative gearing by 20 percentage points each year.  It would also gradually reduce the capital gains tax discount by five percentage points each year until it reaches 25 per cent. Other measures include introducing a net wealth tax on billionaires and increasing council rates on small business properties.  Federal Labor Industry Minister Tim Ayres said Anthony Albanese no plans to adopt the NSW proposal, describing grandfathering protections for existing investors as a 'very important principle' 'In relation to negative gearing, the proportion of losses that can be written off against salaries and wages should be reduced by 20 percentage points each year,' the Glebe branch of NSW Labor said. 'So-called grandfathering arrangements that would exempt existing investors and the rental properties they own from these reforms should not be allowed.' In its May budget, federal Labor scrapped the 50 per cent capital gains tax discount, replacing it with inflation indexation and a minimum 30 per cent tax rate.  It also banned negative gearing on purchases of existing homes by future investors while allowing current investors to keep the tax break under grandfathering arrangements. But federal Labor Industry Minister Tim Ayres said Prime Minister Anthony Albanese has no plans to adopt the NSW proposal, describing grandfathering protections for existing investors as a 'very important principle'. 'We'll be very, very direct at the conference, don't you worry about that. I think we've set out an ambitious but important reform agenda,' Senator Ayres told Sky News. 'It has been legislated at a high level through the parliament, we have set out a consultation process to work with some of the areas of detail and we've ruled out some areas of reform. 'Grandfathering is a really important principle. People have made investment decisions based upon the way the taxation system was structured at the time.' The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. 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.