Housing Minister Clare O'Neil has been accused of having "dodged" a key question on Labor's negative gearing changes as the Albanese government seeks to avoid further scrutiny of the controversial legislation.
During a press conference on Tuesday, O'Neil was asked whether the government would consider scaling back its proposed negative gearing reforms, which have drawn sharp criticism from property industry groups and opposition parties. The minister responded by pivoting to broader housing affordability measures, prompting accusations that she was avoiding a direct answer.
Opposition housing spokesman Michael Sukkar said O'Neil's evasiveness was a clear sign that Labor was trying to hide the true impact of its policies. "The minister had an opportunity to provide clarity to millions of Australian homeowners and investors, but instead she chose to dodge the question," Sukkar said. "This is typical of a government that refuses to be transparent about its agenda."
Labor's Negative Gearing Changes Under Fire
The Albanese government's proposed changes to negative gearing, announced in last month's federal budget, would limit the tax deduction to new properties only, a move aimed at boosting housing supply. However, critics argue the policy could reduce investment in existing rental properties, potentially driving up rents.
Property Council of Australia chief executive Mike Zorbas warned that the changes could have unintended consequences. "While we support measures to increase housing supply, restricting negative gearing to new properties may deter investment in the existing housing stock, which is crucial for renters," Zorbas said.
Government Defends Stance
In response to the criticism, a spokesperson for O'Neil said the government was committed to its housing agenda and would not be swayed by "scare campaigns." The spokesperson reiterated that the changes were designed to encourage new construction and improve affordability for first-home buyers.
Prime Minister Anthony Albanese also defended the policy, stating that it was part of a comprehensive plan to address the housing crisis. "We are taking action on multiple fronts, including increasing social housing, helping renters, and making housing more affordable for Australians," Albanese said.
The controversy comes as the government faces mounting pressure over its handling of the cost-of-living crisis, with housing affordability emerging as a key issue ahead of the next election.
