The Coalition has blasted the Albanese government for being “after Australians’ money” as Labor considers changes to negative gearing arrangements for property holders.
Reports emerged on Friday that Treasury was considering legislation that would cap negative gearing for investment properties ahead of the May federal budget.
Currently set at an unlimited number of properties, Treasury is reportedly looking at potentially limiting negatively geared properties to just two.
Speaking to Sky News Australia on Friday, shadow communications minister Sarah Henderson delivered a stinging assessment the government’s potential move.
“These reports confirm … that Labor is now looking at two taxes on Australians’ home, not just one,” Ms Henderson said.
“This is further confirmation, of course, that Labor is after Australians’ money. They’ve run out of their own money and now they’re after your money. We know that this will mean less houses, not more.
“So this is, as I say, further confirmation that the budget is out of control and now the government is looking in every way that they can tax Australians to try and get their budget back into some sort of control.”
Ms Henderson doubled down on her grim warning for homeowners, claiming Labor is “destroying the great Australian dream of home ownership”.
“More taxes on housing will mean less houses for young Australians, not more. And that’s why we will reject any such suggestion,” she said.
There has been ongoing speculation that Labor could make changes to negative gearing, with Treasurer Jim Chalmers requesting Treasury advice in 2024 on scaling back negative gearing and CGT concessions.
Asked about potential housing investment tax reform in the May budget, Mr Chalmers on Thursday said, “we’re considering other options for the budget, as we always do at this time of the year”.
“We don’t finish the budget in February, we finish the budget in May, and any next steps in any of these areas would be a matter for cabinet in the usual way,” he told ABC radio.
The Australian has reported that one senior Labor figure said no formal policy was yet to be agreed on.
However, sources told the masthead that Treasury was modelling the impact of limiting negatively geared properties to two.
Government sources have also suggested the move was being looked at as part of speculated capital gains tax changes for landlords, news.com.au reported.
Asked about the negative gearing debate on Friday, Health Minister Mark Butler attempted to hose down the speculation.
“I know my department models a whole range of options leading into the budget that never see the light of day,” he told Seven’s Sunrise.
“But we can’t comment on every idle piece of speculation we see in the media as we do the hard work of preparing a budget that is in the interests of Australians, including young Australians.”
Last year, Deputy Prime Minister Richard Marles told Sky News ahead of the federal election that negative gearing was “not part” of the government’s policies.
“We’ve got a housing plan, negative gearing is not part of it, nor are changes to capital gains,” he said at the time.
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