Chalmers: Trust us on negative gearing

Jim Chalmers has brushed off suggestions Labor is considering touching negative gearing, amid reports of growing internal support to revisit the policy.

Backbenchers and unions alike have voiced their concern that negative gearing overwhelmingly benefits property investors and leaves would-be first home buyers struggling to break into the housing market.

But there are broad concerns that touching the policy – which Labor took to the 2019 “unlosable” election - would be unwise right now, after the Albanese government last week broke its promise not to touch stage three tax cuts.

The Treasurer denied Labor was looking to revisit its old policy on negative gearing, saying: “We’re not contemplating or considering resurrecting the policies that we took to the 2019 election. Our focus when it comes to tax and housing has been on incentivising people to rent properties with the tax breaks that were budgeted for in the May budget,” he said.

“We haven’t changed our view.”

Pressed on why Australians should believe him, given just a week ago the government had been touting similar lines in relation to stage three tax cuts, Dr Chalmers said the two policies were completely different.

“We’ve made it really clear that (touching negative gearing) is not something that we have considered or are considering,” he said.

Former Labor leader Bill Shorten took to the 2019 “unlosable” election a promise to significantly wind back negative gearing, and after Mr Albanese took over the party dumped the plan to limit tax concessions on new properties.