Prime Minister Anthony Albanese has given an impassioned defence of Labor's proposed changes to negative gearing, capital gains tax and family trusts, saying he will 'not allow Australia to become a country where aspiration is only for some'. Speaking at Victorian Labor's state conference on Saturday, a visibly emotional Albanese argued the reforms would rebalance the housing market towards first home buyers.
The reforms, announced in last week's federal budget, include limiting negative gearing to new-builds while grandfathering existing properties, changing how capital gains tax is calculated, and imposing a new 30% minimum tax on discretionary trusts. Albanese said the changes were 'the right thing to do, not the easy thing', and that young people were 'missing out' at auctions because they were bidding against investors with tax advantages.
'Because of the tax breaks that are there, it's not an equal process,' Albanese said. 'If you're trying to buy your own home, you don't have that, and that is why, put it simply, we are reforming negative gearing and capital gains.' The prime minister received a standing ovation from party members and unions, appearing to well up at the response.
Albanese rejected criticism that the budget was a 'war on self-starters', instead framing the reforms as pro-aspiration. 'We will not allow Australia to become a country where aspiration is only for some,' he said. 'Our reforms are about backing aspiration for all, bringing the great Australian dream of home ownership back in reach for a new generation.'
However, some Labor MPs have expressed concern that the government has not done enough to explain the complex tax changes. Energy Minister Chris Bowen denied the government had underestimated the backlash, saying 'big reforms are controversial and they're worthwhile'. Opposition leader Angus Taylor described the budget as 'an attack on young Australians' and reaffirmed his commitment to repeal the reforms if elected.
