Australian Government Considers Changes to Negative Gearing

The Australian Greens are pressuring the Labor government to reconsider negative gearing and capital gains tax (CGT) concessions, citing their role in the housing crisis. Reports indicate that the Albanese government is exploring potential reforms, having tasked the Treasury with modeling changes as it faces mounting pressure from both the Greens and crossbenchers. Labor has declined to confirm specifics but acknowledges that public servants are evaluating various proposals. The Greens, led by Adam Bandt, assert that these tax breaks primarily benefit wealthy property investors at the expense of renters and first-time home buyers. Previous attempts to reform negative gearing have met with resistance, particularly following the backlash during the 2019 election. As the delayed vote on Labor's Help to Buy bill approaches in November, there is speculation that a deal with the Greens could be reached if Labor commits to addressing these tax concerns.