Prime Minister Anthony Albanese has delivered an impassioned defence of Labor's proposed changes to negative gearing, the capital gains tax discount, and family trusts, becoming visibly emotional during his speech at Victorian Labor's state conference on Saturday.
The reforms, announced in last week's federal budget, include limiting negative gearing to new-builds while grandfathering existing properties, altering how capital gains tax is calculated, and imposing a new 30% minimum tax on discretionary trusts. Albanese argued the changes are necessary to rebalance the housing market in favour of first home buyers.
“Every Saturday, young people are missing out at auctions because they are bidding against investors who have the Australian taxpayer on their side,” Albanese said. He emphasised that the reforms are “the right thing to do, not the easy thing” and are designed to bring home ownership within reach for a new generation.
The Prime Minister faced sustained criticism over the reforms, with some Labor MPs expressing concerns that scare campaigns could escalate unless the government provides clearer explanations. Energy Minister Chris Bowen acknowledged the controversy, stating, “Big reforms are controversial and they’re worthwhile.”
Opposition Leader Angus Taylor condemned the budget as “an attack on young Australians” and “an assault on aspiration,” pledging to repeal the reforms if elected. Albanese countered that Labor is “the party of aspiration” and will not allow Australia to become a country where aspiration is only for some.
