One Nation Vows to Reverse Labor Tax Reforms
Senator Pauline Hanson pledged to restore capital gains discounts if One Nation wins the next government.
Updated on Oct. 21, 2026 in Taxes
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Senator Pauline Hanson announced a policy shift to overturn current Labor government tax changes regarding capital gains and negative gearing. The proposal seeks to restore the 50 per cent capital gains tax discount and adjust current limitations on negative gearing.
Why it matters
The proposal directly targets current tax experiments deemed destructive by the opposition, specifically aiming to alter how capital gains and discretionary trusts are taxed. These changes could fundamentally redefine the financial landscape for Australian property investors.
One Nation proposes restoring the 50 per cent capital gains tax discount for assets held over 12 months and allowing investors to negatively gear up to two properties. The current Labor policy includes a 30 per cent minimum tax on both net capital gains and discretionary trusts.
The players
Pauline Hanson
She is the leader of the One Nation political party and a serving Senator in the Australian Parliament.
Labor
This refers to the current governing Australian political party that implemented the existing tax framework.
The details
The proposed policy aims to dismantle Labor's restrictions that currently limit negative gearing to new builds and grandfathered assets. It also seeks to replace cost-base indexation for assets held for more than 12 months in an effort to provide relief for property owners.
Timeline
19 October 2026: Senator Pauline Hanson published the new tax policy statement.
End of 2026: Projected date for some home buyers in the 5 per cent Deposit Scheme to fall into negative equity.
Market Dynamics
The proposed tax overhaul represents a direct challenge to the current regulatory framework established by Labor's 5 per cent Deposit Scheme. By promising to reverse these measures, the policy signals a potential shift in the long-term macroeconomic incentives for Australian residential property investment.
Investors may see significant changes to their tax liabilities and property gearing capacity if these proposed reforms are enacted. Those currently participating in government deposit schemes should monitor these policy shifts as they could impact long-term housing equity outcomes.
The takeaway
The proposed tax changes suggest a significant departure from current legislative restrictions on property investment. Homeowners and investors should evaluate how these potential shifts in capital gains and gearing rules could influence their broader financial planning.
Further reading
Learn more about federal fiscal policy on the Australia Taxes page.
Source note: This article includes information reported by AccountantsDaily.
Live Poll
Do you support replacing existing limits on negative gearing and capital gains tax concessions?
