Australian Property Market: Government Asserts Negative Gearing ‘Here To Stay’

Prime Minister Anthony Albanese is standing firm against calls to curtail Australia’s generous property tax benefits, rebuffing pressure from the Greens and housing advocacy groups urging the abolition of negative gearing.

With the Greens holding the balance of power in the Senate, the party is leveraging its influence to push for changes to negative gearing in exchange for supporting the Government’s help-to-buy scheme in the Upper House.

Max Chandler-Mather, the Greens’ housing spokesperson and one of the few MPs who rent, has been vocal about renters’ rights, highlighting the disparity in property ownership among federal MPs, where over 65% own at least one investment property.

“The system is stacked against renters and first home buyers,” Chandler-Mather asserted. “Pressure works. Labor changed their position on stage-three tax cuts, and now they need to change their position on negative gearing and capital gains tax.”

The Everybody’s Home campaign, representing welfare and housing organisations, echoed the call to abolish negative gearing and the capital gains discount. However, the Prime Minister has categorically ruled out any adjustments, stating he has “no intention” of altering property taxes.

Labor’s stance on negative gearing has evolved, having previously taken it to the 2016 and 2019 federal elections, promising to scale back tax breaks on new investment properties, but subsequently abandoning the policy after electoral defeats.

Meanwhile, CoreLogic data revealed that the value of residential real estate reached an estimated $10.3 trillion by the end of January, with regional dwelling values rising at 1.2% for the month, outpacing the 1% increase in the capitals.

Although the rate of rent increases shows signs of slowing, it remains a significant burden on tenants. Australian rent values climbed by a further 0.8% in January, up from the 0.6% increase recorded in December, contributing to an annual growth rate of 8.3% in January, according to CoreLogic’s Housing Chart report.

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