Albanese Government Plans Changes to Negative Gearing and Capital Gains Tax

The discussions took place in the government's priority and delivery committee, a small group that meets as needed at The Lodge or in the prime minister's office. The committee is smaller than the national security committee or the budget review group.

Albanese had previously ruled out changes to negative gearing and the capital gains tax discount during the campaign. On April 9 he stated: “Yes. How hard is it? ” when asked to guarantee no changes. By the end of the year, calculations had shifted.

Albanese told Chalmers and Gallagher to develop options over the summer. The goal was to address housing affordability, particularly for middle-aged and younger voters. Albanese had planned to outline the case for change in a speech on intergenerational inequality around Australia Day.

Those plans were disrupted by a terrorist attack at Bondi Beach in which two Islamic extremists killed more than a dozen people. Albanese's response to the attack affected his approval ratings. One Nation rose in opinion polls, drawing support from both conservative voters and about one in ten Labor voters.

In late February, U.S. The Reserve Bank raised interest rates three times to address rising inflation. In March, Chalmers stated he did not see the conflict as a reason to slow down but rather to advance further on the housing agenda. Albanese delivered a delayed speech to the press club on April 2.

In an interview, Chalmers said the international events had required some budget adjustments but that the government still intended to proceed with much of its agenda. Gallagher, who works closely with both men, said Albanese had considered the decision over several months.