Anthony Albanese declines to rule out negative gearing reforms after housing Senate blockade

Anthony Albanese has refused to rule out changes to negative gearing and capital gains tax concessions, as he ramps up his attacks on the Greens and the Coalition.

Anthony Albanese with Housing Minister Clare O’Neil. Picture: Gaye Gerard / NewsWire

Anthony Albanese has refused to rule out changes to negative gearing and capital gains tax concessions as he ramps up his attacks on the Greens and the minor party demands changes in exchange for support of the government’s housing agenda.

After the Coalition and the Greens teamed up to block the government’s housing legislation in the Senate and delay the vote for two months, the Prime Minister vowed to reintroduce the Help to Buy bill during the year’s remaining sitting weeks.

The Greens have withheld their support from Labor’s shared equity scheme arguing that it would help only a fraction of renters and increase house prices, instead pushing for a rent freeze, more investment in social housing and the winding back of negative gearing and capital gains tax.

When asked if the tax concessions were completely off the table, Mr Albanese sidestepped the question, saying “they’re tax policies” and “I don’t answer those sorts of questions”.

“People voted in 2019 on some of those ideas, they were rejected,” he told ABC Radio National.

“And what we are interested in, when it comes to housing, is things that will increase supply … A whole lot of economists will tell you that the measures you talk about will not increase supply, and the danger is they will decrease supply.”

Mr Albanese escalated his attacks against the Coalition and the Greens, calling them the “No-alition” for holding up the legislation.

The scheme would allow eligible buyers to purchase a home with a minimum 2 per cent deposit and the government owning up to 40 per cent.

Peter Dutton called on Mr Albanese to be “honest with the Australian public” about his plans to reform negative gearing and capital gains tax, remarking that the government was under increasing financial pressure from the NDIS, paying interest, aged care and now childcare reforms.

“They’re already taxing unrealised capital gains and superannuation,” the Opposition Leader said.

“If they’re planning on abolishing negative gearing, be honest with the Australian public.”

Greens housing spokesman Max Chandler-Mather said he hoped the remarks signalled the government’s intention to negotiate with his party and take action to stop giving concessions to the “property investors turbocharging the price of housing”.

“I hope this is a sign that they are starting to feel the pressure, and perhaps realising that they were wrong to refuse to negotiate with the Greens,” he said.

“As we’ve made clear from the start, our door is open on Labor’s housing plans if they are prepared to take serious action on scrapping these tax handouts and investing that money into building homes that people can actually afford.”

Opposition Treasury spokesman Angus Taylor said Mr Albanese’s decision to break an election promise by revising stage three tax cuts proved voters “can’t trust a word” he says on tax policy.

“Australians already know they can’t trust anything this Prime Minister says when it comes to tax,” Mr Taylor said.

“Labor has already broken its promise not to change stage three, not to tax super and not to tax franking credits. This is a government that thinks it can tax its way out of inflation.”

Master Builders Australia chief executive Denita Wawn said building more homes was key to putting downward pressure on house prices, and negative gearing reform would ultimately discourage investment.

“Negative gearing changes keep cropping up as a quick fix but we must remember why they continue to be abandoned – they reduce housing supply and drive up rents,” she said.