Prime Minister Anthony Albanese has admitted to using negative gearing, just one day after his government barred future investors from the concession.
Budget Changes Spark Controversy
Treasurer Jim Chalmers delivered the Federal Budget on Tuesday and announced major changes to capital gains tax (CGT) and negative gearing. Negative gearing allows owners of investment properties to claim back their costs, such as interest on loans, maintenance, and rates. Under Labor's changes, only those with existing negatively geared properties or who build new homes on vacant land will be entitled to claim their expenses.
Albanese's Admission
When asked by Sky News on Wednesday if he had negatively geared any of his properties, Albanese said: 'Oh, look, I have in the past, absolutely.' He added, 'But all my things are declared in the normal way. I'm subject to all of that, but in a transparent way, like everyone else.' Albanese did not clarify whether his current investment property was negatively geared, but he did recently declare rental income.
The Prime Minister currently owns a $4.3 million clifftop home in Copacabana, on the NSW Central Coast, and a property in Marrickville, in Sydney's inner-west. He recently sold an apartment in Canberra and a property in Dulwich Hill, inner-west Sydney.
Parliamentarians' Eligibility
At least 15 cabinet ministers own investment properties and 10 have declared rental income, meaning they will remain eligible for negative gearing. Albanese was asked whether it was fair those parliamentarians would continue to receive the concession while future property investors were locked out. 'They operate in exactly the same way. In what way is there a differentiation?' he said.
Opposition Criticism
Shadow treasurer Tim Wilson lashed out at the major tax changes, given Labor promised not to touch CGT and negative gearing at last year's federal election. 'The Treasurer has been caught out basically lying to the Australian community with the Prime Minister,' Wilson told Sky News. 'Australians are angry, and more importantly, there's been a clear record of broken trust and it's not even going to deliver the claimed benefits that they say.'
