Anthony Albanese’s government is seriously considering changes to negative gearing and capital gains tax exemptions.
Nine newspapers confirmed that the Government has asked for modelling on the potential change to negative gearing to be carried out, according to an unnamed Labor source.
Another Labor source confirmed that negative gearing changes were being considered, but Labor may still decide not to move forward with any policy changes.
Negative gearing policies in Australia allow property investors to claim tax deductions when the costs of owning and maintaining their investment properties, such as loan interest and maintenance expenses, exceed the rental income they earn from them.
This tax benefit can reduce the investor’s taxable income, potentially leading to a lower tax bill.
Labor leader Bill Shorten’s plan to get rid of negative gearing contributed to him losing the ‘unloseable election’ to Scott Morrison in 2019.
When Mr Albanese took over Labor’s reins after that loss he said changes to negative gearing was off the table.
But now it could be back on Labor’s agenda for the federal election that is due to be held by next May.
In interviews last week, Mr Albanese was asked repeatedly if Labor would consider changes to negative gearing, and at no point did he rule it out.
‘I don’t answer those sorts of questions,’ he said on ABC Radio National last Thursday.
But two days before that, he referred to a claim from the Property Council of Australia that changing negative gearing would hurt housing supply.
Anthony Albanese’s (pictured) government is seriously considering a bold economic plan he previously rejected, which will send shivers down the spine of Aussie homeowners
When Mr Albanese took over Labor’s reins after that loss he said changes to negative gearing was off the table. Stock image
‘So that is one of the reasons why we’re very cautious about that,’ he told ABC Radio Sydney.
Being ‘cautious’ is not ruling something out, though, and one Labor official said ‘This is what Labor needs and wants – they need to have a fight on policies that shows what they stand for’.
‘It’s in the values frame. This is why Albo was reticent about ruling it out the other day. Look at what Albo has said, he has not knocked it on the head.
‘This will give the government something big and positive to talk about, it will be a major talking point in the campaign.’
Governments often request policy evaluations from treasury officials without intending to follow through with changes.
