2251 GMT [Dow Jones]--Australia's federal budget looks to be negative for consumption, says Jefferies. One positive was modest tax relief. However, changes to negative gearing and capital gains tax are likely to weigh on the wealth effect from house values, analyst Michael Simotas says. He points out that baby boomers, who have typically exhibited strong demand, are disproportionately affected. "A potential slowdown in housing turnover due to less investment in existing houses would also be negative for housing-exposed stocks including JB Hi-Fi, Harvey Norman, Nick Scali, Metcash and Wesfarmers," Jefferies says. Still, it may encourage construction of new homes or completed projects, which have lagged approvals for some time. That could be an offsetting tailwind for Wesfarmers and Metcash, Jefferies says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

May 12, 2026 18:56 ET (22:56 GMT)

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