Albanese insists on no negative gearing changes, emphasizes importance of investors in boosting housing supply.
The debate surrounding potential reforms to negative gearing has escalated following reports that the government tasked Treasury with modeling potential tax changes.
Amid talks about potential adjustments to negative gearing and capital gains tax reforms, Prime Minister Anthony Albanese clarified that his government does not intend to implement these changes before the next election, sticking to their current housing policy.
Albanese emphasized the importance of increasing housing supply as the primary focus of their housing policy.
Negative gearing is a commonly used investment strategy in Australia where the costs of owning an investment property exceed its income, allowing investors to claim the loss as a tax deduction with the expectation of future property value appreciation.
The discussions on potential changes to negative gearing reforms intensified after reports suggested the government had tasked Treasury with modeling potential adjustments to tax arrangements for investment properties, a move that could impact a significant number of voters.
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Labor has been working to pass two key bills—Help to Buy and Build-to-Rent—but faces challenges securing support from the Greens and the Liberal-National Coalition.
When asked if he believes negative gearing benefits all Australians, Albanese highlighted the role of housing investment in rental availability and construction, noting that schemes like Build-to-Rent offer incentives for increased housing construction.
Albanese defended the independence of the Treasury and the public service, stating they do not need to be micromanaged and are capable of exploring policy ideas autonomously.
Treasurer Jim Chalmers avoided questions about negative gearing, emphasizing the government’s housing policy focuses on building more houses for Australians and addressing tax priorities like the PRRT and superannuation adjustments.
