Irvine backs CGT reforms on property, but warns against applying controversial changes to risk assets
NAB chief executive Andrew Irvine (pictured) has stated his support for Labor's negative gearing and capital gains tax (CGT) reforms targeting property investment, while sounding a warning that extending the CGT changes to other asset classes risks dampening Australia's appeal to risk capital.
In an interview with the AFR, Irvine said the Australian economy “is too dependent on property as an asset class”.
“Diversifying a little bit away from property to other asset classes – I'm supportive of that,” said Irvine, continuing: “You have to do it in an orderly way, so that we manage the implications to prices and housing stock, but I can live with those changes to negative gearing."
Risk assets need different treatment
Where Irvine drew a clear line was on the government's decision to extend CGT changes beyond investment property to other asset classes.
Under the Budget reforms, Labor wants to replace the 50% CGT discount with indexation for non-investment property assets, including equities – a change analysts have warned could shift investor behaviour toward income-paying stocks and away from growth assets.
Irvine argued that conflating risk assets with passive assets in the tax system is a mistake that could erode Australia's competitiveness as an investment destination.
"Risk assets shouldn't be taxed in the same way as passive assets," he said. "Australia should be a place where risk capital wants to come. When you think about venture capital, the new economy, innovations in digitalisation, fintech, biotech, agritech – you want Australia to be at the leading edge of that. Having tax policies that are globally competitive in those kind of risk assets is important."
Trust changes add to business concern
Beyond CGT, Irvine flagged that the budget's treatment of trusts had generated significant disquiet, particularly among small business owners. While he acknowledged that passive income held in trusts should be taxed appropriately, he expressed concern about the way the changes are being implemented.
"Everyone I talk to is very clear on the fact that all types of passive income, whether it's in an individual name or a trust name, should capture an appropriate amount of tax – that isn't for debate," he said. "But what is concerning is that as described, the current execution of the changes are suggesting significant amounts of double taxation. That's concerning a number of our customers, and not just wealthy customers – small business owners and business owners up and down the country."
Confidence under pressure
NAB is Australia's largest business lender, having provided $128 billion in new business lending in 2025. Irvine noted that business lending pipelines had held up better than housing pipelines through recent headwinds, but acknowledged the post-Budget uncertainty was beginning to weigh on confidence.
Read more: CBA, NAB or a dark horse? Who is winning the business-lending race?
"When confidence is hit across the board, you should expect to see some softness going forward in both lending categories," he said, noting that geopolitical pressures – including the impact of the Middle East oil crisis on inflation and interest rate expectations – had already been squeezing sentiment before the budget landed.
Labor’s Budget bill is currently facing scrutiny in a two-day Senate inquiry. While the bill has passed the House of Representatives, mounting political and public backlash is raising the prospect of the government being forced into making significant concessions in order for the bill to be passed into law.
Read more: NAB warns of looming bad credit spike amid Middle East chaos
