Greens and Senate crossbenchers push for negative gearing and capital gains tax discount overhaul

Anthony Albanese would have the Senate’s support to crack down on negative gearing and capital gains tax discountif he adopted new policies ahead of the election.

Anthony Albanese in question time. Picture: AAP Image/Lukas Coch

Anthony Albanese would have parliament’s support to crack down on negative gearing and the capital gains tax discount if he adopted new policies ahead of the election, after an overhaul of the tax concessions was backed by the Greens and three Senate crossbenchers.

The Australian understands the Greens may even push for ­reforms to negative gearing and the 50 per cent CGT discount as part of its negotiations on Labor’s signature Help to Buy scheme, which is designed to assist low- and middle-income earners purchase new or existing homes.

The Coalition will oppose the bill, giving the Greens the balance of power.

When the opposition votes against government legislation, Labor must win over the Greens and at least two Senate crossbenchers to push its legislation through the parliament.

While refusing to entertain pushing for a further clamp down on franking credits or family trusts, Greens leader Adam Bandt said: “2024 has to be the year we overhaul negative gearing and capital gains tax handouts.”

As the Coalition and Labor traded barbs over which tax policies the major parties would rule in or out at the next election, which is due by May 2025, crossbench senators Jacqui Lambie and David Pocock demanded the government take action on negative gearing and the CGT discount to help make housing more affordable.

Leader of the Greens Adam Bandt and Anthony Albanese during Question Time at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

“The gall of some of these politicians who have multiple investment properties to get up there and say we cannot touch negative gearing and capital gains tax discounts, I think they have to be on the table if we want to turn this ship around and have housing as something that everyone in our community can afford and to not have housing where it’s arguably easier to buy your second house than it is your first house,” Senator Pocock told ABC radio.

Senator Lambie added: “I understand you want investment and not just your super (for retirement), but how many houses do you need to invest? I’ll just remind those people they can’t take that money when they’re 10 foot under.”

Greens defector-turned-independent senator Lidia Thorpe backed her former party’s comments on negative gearing. The Greens want to limit the tax ­concession to one investment property.

“If it’s about benefiting the rich people and the politicians, then I’m not going to support that. I’m only going to support any policy or legislation that gives people a hand up, not a handout,” Senator Thorpe said.

Negative gearing allows people to claim a loss from their property investment against their income.

Australians can halve the capital gains tax payable on a property if the asset is held for at least 12 months.

After Labor’s stage three backflip, the Coalition used question time on Wednesday to cast doubt on whether Labor really had no plans to change tax arrangements on the family home and trusts.

“Farming families and small businesses rely on family trusts to manage their assets. Will the Prime Minister rule out any changes to family trusts or will this just be another broken promise to regional Australians?” Nationals MP Colin Boyce said.

The Prime Minister – who this week voiced the government’s support for the current negative gearing rules – said Labor had made clear what its tax policy was, pointing to the revamp of stage three.

He and Labor’s Senate leader, Penny Wong, pointed to deputy Liberal leader Sussan Ley’s refusal on Sky News to “play the ‘yes this is good, this is bad’, ‘the rule in, rule out’ (game)” on tax.

Australian Taxpayers Alliance president Brian Marlow said Mr Albanese and Jim Chalmers “need to give voters a clear yes or no ­answer right away” on whether they would try to change the CGT discount, negative gearing or go after family trusts.

One Nation leader Pauline Hanson was against changes to negative gearing or the CGT discount and will instead push for a 25 per cent flat rate on all incomes above the tax-free threshold.