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Teary Albanese defends ‘pro-aspiration’ tax overhaul

Sumeyya IlanbeyVictorian political correspondent

May 23, 2026 – 3.28pm

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Prime Minister Anthony Albanese framed his controversial overhaul of capital gains tax, negative gearing and trusts as pro-aspiration in his most impassioned defence of the changes, as he seeks to contain the growing political blowback to the federal budget.

Albanese became teary as he told a speech to the Victorian Labor Party’s state conference on Saturday that the federal government had thrown everything at increasing housing supply and lifting home-ownership rates, and more needed to be done.

Prime Minister Anthony Albanese and Premier Jacinta Allan addressed Labor faithful at the party’s state conference on Saturday.  Getty Images

He also had a dig at the viral social media campaign that has depicted Albanese as a partner who had taken a 47 per cent stake in their business because of changes to capital gains tax, and said Australian taxpayers were a “partner” in every investment property due to generous tax breaks.

“Labor is the party of aspiration and we will not allow Australia to become a country where aspiration is only for some. Our reforms are about backing aspiration for all,” Albanese said in his speech.

“Bringing the great Australian dream of home ownership back in reach for a new generation. Our changes are pro-aspiration, and pro-supply, so we can help people get into a home of their own.”

Amid growing hostility towards the budget that opponents have labelled an attack on aspiration, the prime minister is showing no signs of backing down despite calls from small business and teal independents to exempt more than just tech start-ups from the increase to CGT.

Under the changes unveiled in the federal budget, the 50 per cent CGT deduction will be replaced with an inflation-based model underpinned by a 30 per cent floor, and negative gearing will be limited to investments in new properties.

Federal opposition leader Angus Taylor, Victorian Liberal Party president Brian Loughnane and state opposition leader Jess Wilson rallied the Liberal troops.  Jason South

A 30 per cent minimum tax will be applied to new discretionary trusts. Of the 1 million trusts in Australia, 10,000 are currently discretionary testamentary trusts.

“Most people are working their guts out for a wage so they can provide for their family and build a better life,” Albanese said. “These Australians, millions of hardworking people, will never be able to access a trust. Never sat around a kitchen table and thought, have we thought of setting up a trust? I mean, seriously.”

The Labor and Liberal parties both held their state conferences on Saturday, in a soft launch of their parties’ campaigns ahead of the Victorian election in six months.

Premier Jacinta Allan announced a publicly owned apprenticeship academy at the State Electricity Commission to hire 2000 people over the next four years. It will cost $50 million to set it up, and the apprentices’ wages will be paid through the contracts SEC enters into with private companies.

While opposition leader Jess Wilson guaranteed a quarter of infrastructure funding under a Coalition government would be spent in regional areas.

Allan said: “In six months, the Victorian people get a chance to answer a question: real change to make life easier, safer and more affordable, or cuts you can’t afford … It will be the honour of my life to lead this great movement into that fight. It won’t be easy. But failing this challenge will be far harder for the millions of people who rely on Labor governments – and labour unions – to secure a fairer deal and a better life.”

Wilson said: “This is the only party that is capable of restoring hope to Victoria and Victorians, the only party capable of turning this state around, of getting it moving again in the right direction, so Victorians can live safely and live well. So often it is up to us to clean the mess left by the Labor Party, and on almost every measure, Victoria is one hot mess.”

Federal opposition leader Angus Taylor reportedly told the Liberal Party state conference Albanese was “incompetent [and] a liar”, and described the budget as an attack on all Australians.

“It is a war on aspiration in this country, it will crush the reward-for-hard-work spirit that underpins our nation’s success,” Taylor said, according to The Australian.

Albanese said Allan was “defined by her enthusiasm and by her determination to make Victoria stronger and fairer”, while Taylor urged party faithful to convince voters not to vote for One Nation and warned “if the vote sprays, Labor stays”.

At the Liberal Party’s state conference, former federal director Brian Loughnane was elected state president unopposed as expected, and in a speech to members stressed the importance of unity.

Sumeyya Ilanbey is the Victorian political correspondent for The Australian Financial Review. Connect with Sumeyya on Twitter. Email Sumeyya at [sumeyya.ilanbey@afr.com.au](mailto:sumeyya.ilanbey@afr.com.au)