Announced as part of the country’s 2026 budget, Australia’s proposed capital gains tax reforms are set to do more than reshape property investing.
They will also accelerate a shift in how younger Australians invest, particularly those using shares and exchange-traded funds (ETFs) to build a home deposit
While the reforms are unlikely to deter investing altogether, they will reduce the appeal of high-turnover trading strategies and strengthen demand for diversified, lower-maintenance ETF portfolios designed for longer holding periods. For many younger Australians, traditional pathways into home ownership have become increasingly difficult. As a result, market-based investments such as equities, ETFs, and even crypto have increasingly been used as deposit acceleration tools alongside traditional savings.
However, reforms that reduce the tax efficiency of shorter-term capital gains may make frequent trading less attractive from a post-tax returns perspective. This does not necessarily mean equities themselves become less appealing. Instead, the reforms will shift investor behaviour away from speculative or tactical trading and toward long-term accumulation strategies.