Hanson Promises to Reverse Labor’s Tax Changes, Protect Negative Gearing

Leader of the One Nation party Pauline Hanson delivers a speech to supporters at a meet and greet event in Geelong, Australia, on Oct. 4, 2026. Asanka Ratnayake/Getty Images

One Nation Leader Pauline Hanson has announced that her party would reverse some of the Labor government’s most controversial tax reforms if elected at the next federal election.

In a statement issued on Oct. 19, Hanson said One Nation would repeal the government’s changes to capital gains tax and discretionary trust taxation while protecting negative gearing for up to two investment properties.

One Nation has also vowed to oppose any future inheritance tax or tax on the family home.

Labor plans to replace the existing 50 percent capital gains tax discount with inflation-adjusted calculations and a minimum 30 percent tax rate on capital gains from July 2027.

It also wants to restrict negative gearing on established residential properties purchased after May 12, 2026, and introduce a minimum 30 percent tax rate on discretionary trust income from July 2028.

“[Treasurer] Jim Chalmers is experimenting on the Australian economy, and everyday Australians are his guinea pigs.” Hanson said.

“He’s playing with your home, your rent, your business and your savings.

“When his experiments fail, Australians will pay dearly. He has smashed business confidence, cut off business investment and helped send the property market into free fall.”

Hanson claimed that more than 1,100 households who had purchased their homes through Labor’s 5 percent deposit scheme are now estimated to be owing more than their homes are worth due to negative equity.

Negative equity occurs when a homeowner’s mortgage debt exceeds the property’s estimated market value, but it does not necessarily mean they have fallen behind on repayments or lost their home.

The issue can result from buying a property at a high price, falling property values and additional home-buying costs.

“Labor encouraged them into the market, then pulled the rug out from under them,” Hanson said.

The senator also criticised Labor’s alleged involvement in the tax office’s credit card ban.

“They botched the ATO credit card ban and lied about their involvement,” Hanson said.

“Now accountants warn Labor’s trust changes could cost Australians billions in unnecessary advice and restructuring.

“One Nation will restore the 50 percent capital gains tax discount and scrap Labor’s proposed 30 percent minimum tax on trusts.”

Treasurer Cites ‘Fairer’ Tax System

On Oct. 14, Chalmers announced the government had introduced its “next tranche of legislation” to reform the nation’s tax system, which he described as fairer.

The changes include a proposed minimum 30 percent tax on discretionary trusts.

“There are legitimate reasons to use a trust, but they also allow a small number of people to plan their tax affairs in ways that aren’t available to most Australians,” Chalmers said in a statement.

“More than 95 percent of individual tax-filers don’t receive trust income and more than 90 percent of small businesses will not be affected by these changes in any given year.

“We are providing options to be exempt from the minimum tax entirely and rollover relief for businesses that want to restructure.”

Chalmers argued that there had been numerous reviews over the past 50 years that had raised the need to reform discretionary trusts.

“Although the proportion of people with a discretionary trust is small, the settings are becoming unsustainable with the number of trusts more than doubling over the past 20 years,” he said.