Greens and teals to heap pressure on Labor to follow through on negative gearing slashes

Labor set to face extra pressure on negative gearing, especially in the event of a minority government, from teals and Greens crossbenchers.

The Greens and teal crossbenchers will capitalise on any election debate about scaling back negative gearing by heaping pressure on Labor to reform housing tax concessions if it ends up in minority government.

After derailing Labor’s signature Help to Buy and Build to Rent housing schemes in the Senate last week, the Greens on Wednesday rushed to claim credit for Labor’s apparent rethink on negative gearing and capital gains tax breaks despite any move this term of parliament being unlikely.

With recent polls predicting neither Labor or the Coalition will reach a majority at the 2025 federal election, independent crossbench MPs and the Greens are poised to be government kingmakers with tax reform a major issue.

Adam Bandt, Australian Greens Leader. Picture: NewsWire / Martin Ollman

Greens leader Adam Bandt said Labor “could have a deal” on their housing policies if it rolls back the concessions.

“This kind of reform could start to fix the housing crisis and see Labor’s weak housing bill pass the Senate,” he said.

Greens housing spokesman Max Chandler-Mather agreed negative gearing changes might secure his support for Labor’s other housing policies, but added his party would push for even more concessions.

“If Labor can get this right, and commit to winding back negative gearing and the capital gains tax, they might have a deal because it would give millions of renters a genuine chance at buying a home,” he said.

The Greens housing spokesman Max Chandler-Mather. Picture: NewsWire / John Gass

“But this is just one solution to the worsening crisis. The Greens also want to see a cap and freeze on rent increases, and a government owned developer to build good quality housing that can be sold and rented at below market prices, like countries do around the world.”

Greens sources said the move to consider negative gearing changes came as Labor seats were under increasing threat at the next election, such as Macnamara in inner Melbourne, where Labor MP Josh Burns beat the Greens candidate by less than 2000 votes in 2022.

Teal MPs – the other significant group making up the lower house crossbench – also threw their support behind reforms to housing taxes, upping the pressure if Labor is taken into minority government at the next election.

MP Allegra Spender during a media interview at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

“Every tax should be on the table,” Wentworth MP Allegra Spender wrote on social media.

“The current tax system is leaving young people behind. Older households get wealthier while under 35s barely move. We need to lower taxes on young working people and tilt the tax system towards home ownership for those locked out.”

Mackellar MP Dr Sophie Scamps and Goldstein MP Zoe Daniel, when asked if they supported changes to negative gearing, called for it to be considered amid a tax overhaul.

Mackellar MP Dr Sophie Scamps. Picture: NCA NewsWire / Martin Ollman

“The housing problem is so serious that I call on the government to hold a National Housing Summit so all possible solutions, including tax reform, are put on the table for discussion,” Dr Scamps said.

Ms Daniel did warn “any change to property tax settings also needs to be carefully considered to avoid making the rental supply situation worse”.

She added she wanted an independent review and overhaul of the tax system, with negative gearing “just one piece of this”.