Prime Minister Anthony Albanese has delivered an impassioned defence of Labor's proposed changes to negative gearing, capital gains tax and family trusts, becoming visibly emotional during his address to Victorian Labor's state conference on Saturday.
Albanese argued the reforms, which include limiting negative gearing to new-builds, changing how capital gains tax is calculated and imposing a new 30% minimum tax on discretionary trusts, are necessary to rebalance the housing market in favour of first home buyers. He said young Australians are 'missing out' at auctions because they are bidding against investors who benefit from tax breaks, effectively having 'the Australian taxpayer on their side'.
The prime minister received a standing ovation from party members and unions, appearing to well up at the response. He declared that 'Labor is the party of aspiration' and said the changes are 'pro-aspiration and pro-supply', aiming to bring home ownership back within reach for a new generation.
However, some Labor MPs have expressed concern that the government is not effectively explaining the complex tax changes, with one telling Guardian Australia that there is no 'clear strategy on complicated issues'. Energy Minister Chris Bowen acknowledged the reforms were always going to be controversial but insisted they are worthwhile for intergenerational equity.
Opposition Leader Angus Taylor criticised the budget as 'an attack on young Australians' and 'an assault on aspiration', vowing to repeal the proposed reforms if elected.
