Gears in motion
The Albanese government is 'flying the kite' on changes to negative gearing and capital gains tax concessions. In doing so, it risks losing control of the narrative.
Facing falling support in the polls and criticism from Labor luminaries for lacking ambition, Anthony Albanese and Jim Chalmers know they need to do something big heading into the election. They just don’t know what yet.
For now, the prime minister and treasurer seem content to 'fly the kite' on changes to negative gearing and the capital gains tax (CGT) concession, hoping something worthwhile emerges from the exercise.
On Wednesday, Albanese and Chalmers confirmed that Treasury is exploring options to curb the use of negative gearing and the CGT deduction for investors — but refused to say whether the government had asked the department to undertake the costings.
This came after Capital Brief reported on Tuesday in our Political Capital newsletter that Albanese was leaving open the option of reforming negative gearing heading into the election, due by May next year. Hours later, The Sydney Morning Herald and The Age moved things forward and splashed with a story revealing the government had tasked Treasury to look at different options.
