Prime Minister Anthony Albanese has defended his decision to reverse a previous commitment not to alter negative gearing, arguing that the government must respond to worsening housing inequality. The remarks come ahead of the Federal budget, which will be released on Tuesday night.
Government's Response to Housing Affordability
Speaking to ABC Radio National on Monday, Albanese stated: 'The last year has been a year of delivery, but we also said that wasn't the limit of our ambition.' He drew a parallel with fuel taxes, noting that the government had previously cut them in response to circumstances, and that similar responsiveness was needed for intergenerational equity.
Pressure on the Prime Minister
When pressed on what had changed since the government pledged not to touch negative gearing, Albanese pointed to the lack of progress in housing affordability. 'How they are different is that they continue to be entrenched without reform, and that's the point,' he said.
He emphasised the struggles faced by young people: 'For a long period of time, young people have tried to save for a home. Another year has passed since the election, and not enough has changed, and so many people have had another year of missing out at auctions, of renting and paying someone else's mortgage, and too many young people are close to giving up on the opportunity of owning their own home.'
More details are expected to emerge as the budget approaches.
