Live: Treasurer says Labor has lost 'political paint' from budget as he defends backdown

Treasurer Jim Chalmers says the federal government has lost "political paint" from May's budget while defending a backdown on key measures.

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Fri 19 Jun 2026 at 7:09am

Fri 19 Jun 2026 at 7:09am

Treasurer takes swipe at One Nation for position on tax changes

By Joshua Boscaini

The treasurer is continuing his media blitz this morning on ABC News Breakfast to sell his budget changes announced yesterday.

The federal government backed down on some key measures in May's budget on capital gains tax and testamentary trusts yesterday.

The federal government is increasing the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.

Income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts.

Asked if the government was pushed to make the changes following backlash from the small business community, Chalmers says the government expected a partisan campaign against the changes.

He's taken a swipe at One Nation while he's at it.

"Obviously there are people in our community who would prefer things stay exactly as they are. That's the irony of the One Nation position. They want to change the government in order to leave the tax system and the housing market exactly as it is," Chalmers says.

"We're delivering real change here and when you deliver real change like this economic reform, it's always contested, it's always contentious."

Fri 19 Jun 2026 at 7:04am

Fri 19 Jun 2026 at 7:04am

Jim Chalmers says government has lost 'political paint' from May's budget

By Joshua Boscaini

Treasurer Jim Chalmers says he thinks the government has lost some support following May's federal budget but doesn't regret pressing ahead with the changes.

Labor backed down on some key measures in the budget and announced carve-outs for small businesses from capital gains tax changes.

The federal government is increasing the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.

And income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts.

Speaking to ABC Radio National Breakfast, Chalmers says the government thinks it has made the right decision in the interests of young people.

"I think we have lost some political paint, but it's worth it because we're doing the right thing here and if we're given the choice between taking the easier path politically or doing the more difficult thing, but the right thing in the interests of particularly first home buyers, young people, workers in the tax system, then it will be worth it," Chalmers says.

Labor needs the support of the Greens to pass its budget measures through the Senate, but Chalmers hasn't said whether he's inching closer to a deal with the minor party.

"We'll continue to discuss with the crossbench in the Senate the best way to pass this legislation. Obviously, there have been some discussions, those discussions aren't concluded yet."

Listen to the full interview in the link below.

Fri 19 Jun 2026 at 6:57am

Fri 19 Jun 2026 at 6:57am

Good morning 👋

By Joshua Boscaini

Hello, and welcome to our federal politics live blog. It's great to have you join us here early this Friday morning!

I'm Josh Boscaini, joining you live from Parliament House in Canberra, here and ready to bring you all of the day's federal politics news.

There's been a flurry of interviews before 7am in Canberra this morning so let me take you through them!