PM forced to play clean-up after Chalmers’ family home flip-flop

Treasurer Jim Chalmers refused to rule out changes to capital gains tax exemptions on personal residences, leaving Anthony Albanese to deny the policy after breaking his own super promise.

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Treasurer Jim Chalmers refused to rule out changing capital gains tax rules that exempt the family home, forcing the prime minister to come out and draw a line through the politically toxic idea just one day after breaking his own promise on not changing the rules around superannuation.

By noon, the treasurer had changed his tune over this comments, saying he “should have” ruled out capital gains taxes on the family home earlier in the day.

“I’m trying to maintain a focus on what we’re doing ... I don’t want to get into the practice of coming before you each day and working through hundreds of billions of dollars in tax concessions and playing the rule in, rule out game,” the treasurer said.

It comes as opposition leader Peter Dutton said on Wednesday the Coalition would repeal Labor’s controversial superannuation changes. “We’re dead against it and we will repeal it,”he said.

Speaking to Sunrise host David Koch Wednesday, Dr Chalmers said that “we haven’t been contemplating changes” to how the family home is treated by the tax office.

When Mr Koch told the treasurer that saying he was “not contemplating” a change was a “weasel word”, Dr Chalmers again refused to rule it out.

“I can say to your viewers that we haven’t been focused on it, we haven’t been working on it. It’s not something we have been contemplating,” the treasurer said.

Treasurer Jim Chalmers has refused to rule out changing capital gains tax rules. Picture: NCA NewsWire / Martin Ollman

Asked again if “under your reign as treasurer, you will never change the capital gains tax on the family home,” Dr Chalmers said, “Well, it’s not my intention. It’s not something I’ve been thinking about, working up, contemplating.”

Challenged to say that he would “guarantee” there would be no change while he was treasurer, Dr Chalmers again ducked the question saying, “I think people understand what my priorities are because I announced the change to superannuation … it’s a modest but meaningful change.”

Anthony Albanese had to deny the policy after breaking his own super promise. Picture: NCA NewsWire / Martin Ollman

Shortly after the treasurer’s interview, Prime Minister Anthony Albanese appeared on ABC RN’s Breakfast, where he gave a more definitive answer.

Asked about the treasurer’s performance and his statement that it’s not the government’s “intention” to tax the family home, Mr Albanese said, “We are not going to impact the family home, full stop, explanation mark.”

Pushed by host Patricia Karvelas, the prime minister added that “it’s a bad idea” to tax a family’s primary residence.

“People who save for their home and you know that they live in with their family is something that we have no intention, we will not be making any changes there.”