Clare O’Neil says the Albanese government wants to resolve concerns surrounding its capital gains tax reforms as quickly as possible while ensuring the final policy delivers the right outcome.
Speaking on ABC’s Insiders, O’Neil said the government’s goal is to make Australia’s tax system more neutral across different investments while preserving concessions for small businesses. She acknowledged concerns raised by investors, startups and business groups, saying some criticism had been exaggerated but admitting there were design issues that still needed to be addressed.
One concern involves businesses that start with a zero cost base and grow rapidly, which O’Neil said may not fit perfectly under the proposed calculation model. She declined to reveal what changes are being considered or provide a timeline for consultations.
O’Neil also rejected calls from the Greens for additional restrictions on negative gearing. She argued governments should avoid disrupting existing household financial arrangements and warned against creating unnecessary instability in the housing market.
Addressing forecasts that house prices could fall, O’Neil said Labor’s tax reforms were not the primary cause. She pointed to interest rates as the biggest factor affecting housing prices. Treasury modelling suggests the reforms would slow price growth by about 2% while helping around 75,000 rental households move into home ownership.
The housing minister also defended Labor’s 5% deposit scheme, which has helped about 260,000 Australians buy a home. O’Neil said default rates remain extremely low and cited recent banking data indicating many participants are performing better than the average mortgage holder despite concerns about potential negative equity if property prices decline.