Australia cuts capital gains tax discount, raising taxes on investment income nationwide

Australia's federal government implemented a reduction to the capital gains tax discount as part of its 2026 budget, affecting how investors—including those with lower incomes—are taxed on asset sales. The reform also introduces a 30% tax rate threshold that impacts small businesses and start-ups, prompting government pressure to clarify support mechanisms for affected sectors. The change represents a significant shift in Australia's investment taxation framework during a period of economic policy debate. ABC News economics correspondent Alan Kohler breaks down how the reform affects different income brackets and business classes.