PM stands firm on housing tax reforms

Labor says it remains committed to its major reforms of housing taxation despite calls for certain measures to be sped up, slowed down or abandoned entirely.

Speaking in the backyard of a Clifton Springs home today, prime minister Anthony Albanese said the changes were part of his government’s overall plan for housing, including the 5 per cent deposit scheme for first home buyers.

About 260,000 people have used the scheme since it was updated last year, including Brooklyn Saccetta and Lochie Dennert, who bought a house in Clifton Springs in October.

The prime minister and Corangamite Labor federal member Libby Coker visited the couple in their home to promote the scheme.

If the policy outlined in the 2026–27 budget becomes law, negative gearing will be limited to new builds from 1 July 2027 and the 50 per cent capital gains tax (CGT) discount replaced with a discount based on inflation and a new minimum 30 per cent tax on gains.

Some sectors may receive carveouts from the changes to CGT, but Albanese said any potential carveouts would not be fast-tracked and only considered as part of the normal progress of the legislation.

“There were were dozens of pieces of legislation the last time there was major tax reform,” he said.

“For issues such as start-ups, what we will do is deal with a discussion paper from Treasury… which will be fed into the legislation later this year.”

A Senate inquiry heard public submissions this week about the proposed negative gearing and CGT changes.

 

Despite criticism at the inquiry from business groups and the investment housing sector, Albanese said his government would not change its timeline.

“We are very determined to give people the reform that is needed,” he said.

“Our reform is aimed at boosting supply as well as giving young people a fair crack at getting into their first home.

“It gives me a great deal of pride to know my government’s prepared to make difficult decisions but the right decisions in the national interest.”

Coker said the 5 per cent deposit scheme was popular in growth areas in her electorate such as Armstrong Creek and Ocean Grove.

“Not just here, though, but across Australia,” she said.

Albanese said the scheme was the most successful part of Labor’s plan for housing.

“Because we [the government] deal with mortgage insurance and reduce the cost therefore of borrowing and enable people to get into home ownership earlier, it’s made an enormous difference,” he said.

Saccetta and Dennert said buying a home faster through the scheme allowed them to invest in their future, and recommended using a mortgage broker to simplify the house-buying process.