No intention of revisiting negative gearing, says Treasurer Jim Chalmers
Jim Chalmers says a crackdown on negative gearing for property investors is not on the table — and build-to-rent remains the focus for improving housing affordability.
Jim Chalmers says the government is not contemplating reviving crackdowns on negative gearing and franking credits, despite Labor MPs privately believing Bill Shorten-era measures should be revived at some point in the future.
Peter Dutton on Monday ridiculed the Treasurer’s claim that the government was not contemplating changes to negative gearing or franking credits, saying voters should not trust Labor after the government moved to reshape already legislated stage 3 tax cuts, despite repeatedly promising to carry them through.
“How can you believe anything this government says on economic management? The Treasurer’s comments today that negative gearing won’t be touched are as believable as his rock solid promise that the stage three tax cuts were legislated and going ahead,” the Opposition Leader said.
“You just can’t trust this PM and this Treasurer on the economy, and as we know, when Labor runs out of money they just come after yours.”
Dr Chalmers said the government was not “contemplating or considering” reviving crackdowns on negative gearing and franking credits.
Amid a backbench push for the government to amend the tax settings to help younger generations get into the property market, Dr Chalmers said the government had not changed its position and that Labor was addressing the housing crisis in other ways.
“We’re not contemplating or considering resurrecting the policies that we took to the 2019 election,” Dr Chalmers said on Monday.
The Australian revealed support within the Albanese government for revisiting Labor’s negative-gearing policies in a future term, with caucus members concerned older generations unfairly benefit under current laws.
While they are wary about taking on too many political risks, MPs are warning that the policy settings are benefiting investors rather than first-home buyers and would like the tax setting to be amended to help younger generations get into the property market.
Pressed on whether the housing crisis justified a response as much as cost-of-living problems, Dr Chalmers said Labor had “found other ways to support the housing market”.
With backbenchers pushing for more cost-of-living relief to be rolled out on top of the rewrite of stage three tax cuts, Dr Chalmers flagged further “responsible” measures in the May budget.
Crossbench Tasmanian senator Jacqui Lambie said Mr Albanese would not “have the courage” to make changes to negative gearing policies and argued Australians should be restricted to owning three homes. “We have a housing shortage problem out there,” Senator Lambie said. “And I think, certainly anyone, you do not need to have 25 houses in your portfolio, that’s for sure.’’
Greens leader Adam Bandt said the government should restrict negative gearing.
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