Prime Minister Anthony Albanese has dodged questions on property tax reforms, and conceded newly minted housing Minister Clare O’Neil could “have other measures”.
Prime Minister Anthony Albanese has dodged questions on property tax reforms, and conceded newly minted housing Minister Clare O’Neil could “have other measures”.
Mr Albanese has come under pressure from the Green and crossbench Senators Jacqui Lambie and David Pocock to limit negative gearing concessions in a bit to address the nation’s housing affordability crisis.
Earlier this month, the Parliamentary Budget Office analysis, requested by the Greens and released on July 1, showed tax revenue forgone due to the federal government’s policies of negative gearing and capital gains tax discounts will total about $165.5 billion between 2024-25 and 2033-34.
The figures have since been used by the Greens to demand a winding back of negative gearing incentives and a reduction in capital gains tax discounts in exchange for their support in the Senate to pass Albanese’s Help to Buy scheme.
The scheme aims to help eligible applicants get into the housing market by loaning 30 per cent of the purchase price for an existing build, or 40 per cent for a new build.
It’s meant to reduce the bank loan so eligible people would require smaller deposits and loans – and would be limited to 10,000 applicants per year for four years.
Former Housing minister Julie Collins ruled out negotiating with the Greens on the bill, despite not having the opposition’s support to pass the bill in the upper house.
When asked on ABC Afternoons yesterday whether, on the back of a cabinet reshuffle which saw Ms Collins replaced by Clare O’Neil, he would rule out changes to negative gearing and capital gains policies, Mr Albanese said “we’re talking about things we are supportive of, not what we are not doing”.
“What we stand for is the policies that we have, not the ones that we don't have, and the ones that we have are all about supply,” he told ABC Afternoon’s Greg Jennett.
“Whether it be the Build to Rent Scheme or, as you said, the Shared Equity Scheme.
“The Greens have a policy of supporting shared equity schemes, it's just they won't vote for them.”
Pressed again to rule out changes to negative gearing and capital gains policies, Mr Albanese would not give a concrete answer.
“I'm saying what we are doing, Greg, and what I don't do is get distracted by nonsense, rule in, rule out games,” he said.
“What I do is say exactly what we are doing and that is what we are doing.
“So, I'm focused on that. Clare O'Neil I'm sure will have other measures, but they'll all be aimed at supply because that's the key.”
Under negative gearing arrangements, when the cost of owning a rental property is greater than the income it generates, the owner can deduct the loss against their taxable income – therefor paying less tax.
With capital gains tax, people who sell an asset at a profit must pay tax on that profit at the same rate as their taxable income – however, if the person has owned the asset for a period of longer than 12 months, a 50 per cent discount on the tax can be given.
