By The Guardian (World News) | Created at 2024-09-26 00:45:12 | Updated at 2024-09-30 15:27:04
4 days ago
Anthony Albanese has said his government is not considering taking negative gearing reforms to the next federal election, despite the Treasury modelling potential changes and a growing number of Labor MPs saying the controversial tax write-offs on housing should be re-examined.
After 24 hours of speculation the government may be preparing the ground to change its policy, fuelled by the prime minister and other senior ministers not specifically ruling out reforms, the prime minister in a morning media blitz gave his strongest indication Labor was reluctant to fight for the change.
Albanese was asked on ABC TV: “Are you considering taking negative gearing reform and capital gains tax reform to the next election?”
He replied: “No, we’re not. What we’re doing is planning for our Homes for Australia policy. That’s the policy that we have. And that’s what my government has focused on.”
Numerous Labor MPs, many in marginal seats or those under threat from Greens challenges, have called for a re-examination of negative gearing and capital gains tax. Half a dozen Labor members told Guardian Australia that the government should not be afraid of considering reforms to negative gearing, or that they were “open” to fresh and bolder responses to the housing crisis. Others have urged caution, noting the unpopularity of Labor policies on negative gearing in the 2016 and 2019 election losses.
The government would be likely to have sufficient support in both houses of parliament, given that the Greens and the crossbench senators Jacqui Lambie and David Pocock have advocated for changes.
While the Coalition has begun a fierce public campaign against any such changes, the Liberal MP Bridget Archer said negative gearing should be looked at.
But Albanese downplayed any possibility of government movement on the issue, saying in multiple media interviews on Thursday morning that he did not believe changes would address Australia’s housing crisis.
“The issue of negative gearing is one of supply,” he told ABC TV. “Will it add to supply or will it decrease supply? The figures and research that has been produced by organisations like the Property Council indicate that it would reduce supply and therefore not contribute to solving the issue.
“That’s the issue. We just want to get on with our plan of building more homes in the Homes for Australia plan.
“If you didn’t have investment in housing, you wouldn’t have private rentals, you would have less supply and less construction is the concern which is there.”
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On Channel Nine’s Today program, Albanese said: “We have no plans to change negative gearing.”
The host Sarah Abo pointed out this was a similar answer to those given shortly before Labor broadened the stage-three tax cuts to shave off some benefits for high-income earners and distribute more to low- and middle-income Australians. Shortly before the change senior ministers said they had “no plans” to reform the plan.
Albanese praised the tax changes as “courageous” and “the right thing done for the right reasons”.
“We did the right thing because of the economic circumstances which were there, of people needing that cost-of-living relief.”
The Greens want the government to move on negative gearing as part of negotiations for supporting Labor’s help to buy housing bill. But the Coalition has started strongly criticising the government over the possible change, with the shadow treasurer, Angus Taylor, saying the reforms wouldn’t solve housing problems.
“I don’t know how taxing mum and dad investors more is going to increase supply,” he told Radio National.
The opposition leader, Peter Dutton, tweeted on Wednesday: “Australians can’t trust anything this Prime Minister says when it comes to tax.”
