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‘Market Is Cooked’: Labor Defends Tax Changes Amid Poll Shock
The reforms would limit negative gearing to new builds and cut capital gains tax breaks, with economists saying they could hit Queensland hardest.
- The Albanese government's federal budget removes negative gearing for future purchases of existing residential properties while retaining it for new builds. Housing Minister Clare O'Neil stated the changes aim to address housing inequality, though she noted they won't solve the problem "overnight."
- Brisbane property values soared 84 per cent in five years, creating an acute housing crisis in Queensland. Cotality head of research Gerard Burg said the extraordinary price growth results from a supply-demand imbalance, adding, "It's people looking for a roof over their heads."
- More than 80 per cent of investor lending targets established homes, which economist Saul Eslake noted does nothing to increase supply. Treasurer Jim Chalmers said the policy aims to help 75,000 rental households become first home buyers, asserting, "We've got the balance right."
- Queensland Premier David Crisafulli remains skeptical of the plan, telling reporters on Friday, "Any change in tax has to be about incentivising supply." Opposition Leader Angus Taylor vowed to repeal the changes if the Coalition forms government.
- Fund manager Geoff Wilson warned the reforms may disproportionately impact Queensland, where nearly 80 per cent of investors use negative gearing. He predicts this shift will significantly reduce incentives for investing in existing stock, potentially causing prices to fall in the state.
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The Australian property industry has warned that any reductions in capital gains tax credits or negative gearing incentives would impact housing construction. Meanwhile, the Australian Prime Minister stated that without reforms, social cohesion would be at risk.
Coverage Details
Total News Sources12
Leaning Left4Leaning Right2Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 25%
R 25%
Factuality
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