Election 2025: Treasurer sought ‘advice not modelling’ as negative gearing ‘war’ rears head

Jim Chalmers sought ‘a view’ from Treasury about overhauling negative gearing and the capital gains tax discount, as Peter Dutton claimed the government was ‘at war’ over the issue.

Jim Chalmers on the campaign trail in Brisbane on Thursday. Picture: Mark Stewart/NewsWire

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Jim Chalmers sought “advice” and not “modelling” from Treasury about overhauling negative gearing and the capital gains tax discount, a prospect now ruled out but which prompted Peter Dutton to claim the government was “at war” over the issue.

On the last full day of campaigning before the Easter weekend, Anthony Albanese ventured to target seats in Brisbane while the Opposition Leader travelled to NSW’s Hunter Region.

The Prime Minister on Thursday ruled out negotiating with the Greens over any overhaul of negative gearing and the capital gains tax discount – which the minor party wants to abolish – and said it was not part of his “plans”.

It came as his Treasurer admitted he sought “a view” from his department about negative gearing but said that was “different to commissioning modelling”.

Reaired during Wednesday’s leaders debate, the exchange revived the events of last September when it emerged that Treasury was modelling changes to negative gearing and the 50 per cent capital gains tax discount, leading to intense speculation that the government was considering contentious reforms to property investor tax breaks.

Dr Chalmers definitively ruled out touching the concessions in September and admitted that the government had requested advice, saying at the time that it was “not unusual” to seek and receive advice on “contentious issues in the public domain”.

“The prime minister was asked about commissioning modelling,” Dr Chalmers said on Thursday in Brisbane, after the Coalition accused Mr Albanese of lying about the issue.

“I sought a view (from Treasury) … We’re not proposing any changes in this area.”

Mr Albanese on Wednesday evening said his government had not commissioned “modelling” about changes to negative gearing before attempting to differentiate on Thursday between “modelling” and “advice”.

“It is a normal process (seeking advice),” Mr Albanese said while campaigning in the Liberal-held seat of Bonner, also ruling out “negotiating” with the Greens over the issue in the case of a hung parliament after May 3.

“We have a public service that we encourage to engage in and if an issue is out there getting advice from it, but it’s not what we are doing.

“We have our housing policy that we are taking forward … I’m not negotiating with the Greens.”

It came as Mr Dutton claimed Mr Albanese and Dr Chalmers were “at war” over the issue, accusing Labor of misleading the Australian public about its intentions.

“The prime minister’s out there talking about abolishing negative gearing, or not telling you the truth at least about negative gearing,” Mr Dutton said.

“Jim Chalmers is an advocate for the abolition of negative gearing, and (he is) obviously at war with Anthony Albanese.”

Mr Dutton accused Labor of always having “harboured a desire to abolish negative gearing” amid uncertain language from Labor frontbenchers about any plans in relation to the property tax offset.

“At least Bill Shorten was honest with the Australian people in relation to negative gearing,” the Opposition Leader said while campaigning in Maitland, NSW.

Peter Dutton, with Liberal candidate for Dobell Brendan Small, at a visit to Luka Chocolates near Wyong in NSW on Thursday. Picture: Richard Dobson/NewsWire

Labor went to the 2016 and 2019 elections promising to limit negative gearing to new properties, but ditched the policy after the party’s shock loss to Scott Morrison’s Liberal Party.

Mr Dutton accused Mr Albanese of treating Australians with “contempt”.

“Instead of telling fibs and having problems with the truth, be upfront and honest with the Australian people,” he said.

Former Liberal Prime Minister Malcolm Turnbull ventured into the debate on Thursday in a series of tweets on X, arguing that abolishing negative gearing would not make housing more affordable.

Okay to save time - negative gearing is examined by every government. It is a major tax concession and always contentious and so it is always looked at - what does it cost? What would particular changes mean in terms of revenue and housing affordability. There are many pages in…

— Malcolm Turnbull (@TurnbullMalcolm) April 17, 2025

“Negative gearing is examined by every government,” Mr Turnbull wrote.

“It is a major tax concession and always contentious and so it is always looked at – what does it cost? What would particular changes mean in terms of revenue and housing affordability?

“There are many pages in my memoir describing the detailed consideration of negative gearing that went on in my government in which Peter Dutton was a cabinet minister.”

Negative gearing allows a property investor to deduct annual running losses from their taxable income, meaning they pay less tax. When the investor sells their property, the 50 per cent discount means they pay tax on only half of their capital gain, provided they have held the asset for more than a year.