Prime Minister Anthony Albanese says more action is needed to address housing affordability, defending the government’s proposed changes to capital gains tax concessions and negative gearing arrangements.
Speaking on ABC News Breakfast, Albanese was asked whether he had been surprised by criticism of the proposed reforms.
“Tax reform’s hard … We’re working through these issues,” he said.
The prime minister pointed to government measures aimed at helping first-home buyers and described the proposed changes as modest.
Government Defends Housing Measures
Albanese said the reforms include grandfathering provisions designed to protect investors who already hold negatively geared assets.
He argued that concerns about falling house prices were not reflected in Treasury forecasts.
According to Albanese, Treasury projections do not indicate price declines but instead suggest slower growth in housing values over time compared with previous trends.
House Prices Outpacing Incomes
The prime minister said housing affordability challenges were linked to the long-term rise in property prices.
“It is certainly the case that since the changes were made in 1999, house prices have increased by 400%,” Albanese said.
“That’s more than double the increase in incomes, and that’s what leads and explains the gap that’s there in affordability.”
He said the government had focused heavily on increasing housing supply but acknowledged further work was required.
“What we’ve done is thrown everything at supply … But we need to do more.”
Albanese said the proposed tax changes were intended to support additional housing supply while helping first-home buyers gain better access to the market.
“Which is why these changes are aimed at boosting supply as well as giving first home buyers a fair crack.”