Australians Back Tax Reforms: A Path to Lower Income Tax and Reduced Government Spending
Australians are rallying behind a bold plan to reshape the nation's tax landscape, with a focus on curbing capital gains and negative gearing to fund much-needed tax cuts. A recent survey reveals a strong mandate for Jim Chalmers to take decisive action, aiming to reduce capital gains tax concessions and negative gearing assistance, while also slashing government spending on foreign aid and personal income tax.
The Resolve Political Monitor poll, conducted among 1800 participants from February 8 to 14, 2026, sheds light on the public's sentiment. A staggering two-thirds of respondents expressed support for spending reductions, with only 8% opposing this measure. This overwhelming backing sets the stage for Chalmers to utilize the May budget to cut spending, a move that could significantly impact the nation's financial trajectory.
However, the poll also highlights a nuanced approach to tax reform. While voters are open to substantial changes, they are particularly cautious about increasing the Goods and Services Tax (GST). The survey indicates that half of those surveyed support income tax cuts, with a notable 58% among high-income earners, 55% of Coalition voters, and 57% of employed individuals. Interestingly, Labor supporters align closely behind, with 51% in favor.
When presented with various options to fund personal income tax cuts, two-thirds of respondents endorsed spending cuts, while 58% supported higher taxes on banks and 57% favored increased taxes on mining companies. The poll also reveals a strong sentiment for reducing capital gains tax concessions, with 40% in favor and only 17% opposed. This finding is particularly intriguing, as the concession was introduced in 1999, suggesting a long-standing public desire for reform.
The Liberal Party's stance on capital gains tax is already clear. The new leader, Angus Taylor, has committed to income tax reductions, emphasizing the need for a robust, lower-tax agenda in the upcoming election. This commitment aligns with the public's desire for tax relief.
The poll also underscores the public's enthusiasm for cutting negative gearing concessions on investment properties, with only 17% opposed. However, the idea of increasing the GST faces strong resistance, with 54% of respondents rejecting it, compared to 18% in favor.
Chalmers, in a recent statement, acknowledged the government's reluctance to change the GST but left the door open for potential reforms to the capital gains tax. This nuanced approach reflects the complexity of tax policy and the need for careful consideration.
The Treasurer, in a separate statement, highlighted the government's existing 'ambitious' tax agenda, including tax cuts set to take effect on July 1. This agenda includes income tax cuts, standard deductions, and enhancements to the low-income superannuation tax offset. However, the public's focus remains on spending reductions, with nearly 50% of respondents advocating for this approach.
The poll's findings emphasize the public's desire for a balanced approach to taxation, where tax cuts are funded by spending reductions and strategic tax reforms. As the nation navigates this fiscal journey, the government's ability to strike a delicate balance between tax relief and fiscal responsibility will be pivotal in shaping public opinion and the nation's economic future.
