Budget reply speech: Six things you need to know

Angus Taylor has pledged to revamp existing housing, migration and tax policy settings in his first budget reply speech as Opposition Leader.

As is custom, Taylor was responding to the 2026 federal budget handed down by Treasurer Jim Chalmers on Tuesday night - a budget headlined by significant tax reform.

Unsurprisingly, Taylor - a former shadow treasurer - criticised the latest budget, suggesting that rather than being about intergenerational fairness, it perpetrated intergenerational fraud.

"Labor is locking out young Australians from the opportunities afforded to older Australians to build wealth and prosperity to get ahead."

So which budget measures would the Coalition look to roll back in the future? And what alternative policies are they putting forward? Here are six takeaways from the Budget reply speech.

1. CGT and negative gearing changes would be wound back

Changes to the existing rules around negative gearing, capital gains tax and family trusts were at the heart of Tuesday's federal budget.

In the days since the budget's release, Coalition members haven't been shy in criticising the policy, with Shadow Treasurer Tim Wilson arguing that it would kneecap young Australian investors.

If it wasn't clear already, Taylor reaffirmed that stance, stating that the Coalition would seek to block future legislation related to the reforms or dump them if elected to government.

"The Coalition will fight like hell to prevent Labor's toxic taxes from becoming law. But if they do, I commit that a Coalition government I lead will repeal them."

2. Income tax brackets would be indexed

Still on the tax front, Taylor used his speech to lay out the Coalition's desire to address the issue of bracket creep by way of a policy called the 'Tax Back Guarantee'.

Under the plan, Taylor announced that the bottom two tax thresholds would be indexed to inflation from the 2028-29 income year.

"That will fully protect 85% of income earners, with relief of around $250 in year one, growing to more than $1,000 a year in year four."

The top two tax thresholds would then be indexed from 2031-32.

3. Migration levels would be pegged to housing supply

In an effort to ease pressure on housing, a new Coalition policy outlined by Taylor would directly link Australia's migrant intake to the number of new homes built in the country.

The proposal would see net overseas migration capped at one person for every new home built, though Taylor said that to help housing shortages catch up, the Coalition would aim for an even lower number in the first years of government - if it is elected.

"The number of people coming in far exceeds the number of houses going up. Consequently, the great Australian dream of home ownership is vanishing for old and new Australians alike."

4. Housing infrastructure funding would be increased

In another measure aimed at housing supply, Taylor committed to setting up a new Housing Infrastructure Fund.

The $5 billion fund would allocate money towards roads, water and sewerage infrastructure directly related to new development to help increase supply.

"With such infrastructure supported, we will unlock 400,000 new homes for Australians. As I said, we will also cut red tape, which will take up to $70,000 off the cost of a new home."

Labor unveiled a related package in its latest budget, allocating $2 billion towards housing-related infrastructure.

5. Housing and electric vehicles schemes would be scrapped

Signalling a desire to reduce government spending, Taylor also committed to ending several programs related to housing should the Coalition be returned to power in the future.

Those include the Housing Australia Future Fund, the Help to Buy scheme, the Build to Rent scheme and the New Homes Bonus. The Coalition would also limit the 5% Deposit scheme to citizens.

Beyond housing, Taylor also confirmed that electric vehicle subsides would be scrapped by a future Coalition government.

"We will end tax breaks for electric vehicles, which are overwhelmingly going to high-income Australians."

6. NDIS and JobSeeker would be limited to citizens

In a move that was linked to both migration and spending, Taylor used his speech to outline a new Coalition policy that would see non-citizens barred from accessing a range of government welfare programs.

The policy would apply to 17 different programs, including the National Disability Insurance Agency (NDIS), JobSeeker, Youth Allowance and the Family Tax Benefit.

"If you commit to Australia, Australia will commit to you. After all, taxes paid by hard-working Australians should support Australians," Taylor suggested.

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