Labor MP Amanda Rishworth has refused to confirm or deny if the Albanese government has asked Treasury for advice on scaling back negative gearing and capital gains tax concessions in a heated Sunrise interview.
On Wednesday, the Sydney Morning Herald reported that the government had asked for expert advice on possible changes to the tax benefits to investment property owners.
Negative gearing is a tax concession investors can claim if the income from the rental property investment is less than what the investment costs them, including interest, rates and maintenance.
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The Herald cited an unnamed “senior Labor official” who said a “request for modelling on the potential change to negative gearing had been made” and that it could “canvass changes to the concessions and capital gains tax”.
On Wednesday, Minister for Social Services Amanda Rishworth was grilled by Sunrise host Nat Barr but dodged questions about the report’s claims.
“Are you asking Treasury what the numbers look like to possibly scale back negative gearing?” Barr asked, pointedly.
“Treasury does this sort of work. It would have done so under the Coalition,” Rishworth said.
“Not if it wasn’t asked — have you asked them?” Barr interjected.
“Treasury does routine work all the time around different policies and different ideas,” Rishworth replied.
“Have you asked the Treasury to look at numbers on scaling back negative gearing. Just a question?” Barr pressed.
Rishworth then shifted the conversation to the government’s Help to Buy bill, which is currently being stalled in the Senate by the Greens and the Coalition.
“I have to be very clear, as the government, our focus is on delivering our housing agenda that we have in front of us. Quite frankly, if the Greens and the Coalition would get out of the way of the Senate … ,” Rishworth said.
“OK, that’s obviously a non answer,” Nat said.
Prime Minister Anthony Albanese was asked about possible changes to negative gearing multiple times last week, and refused to rule it out.
In the past, The Property Council of Australia has said changes to negative gearing would hurt rental housing supply.
Asked about the Coalition’s views, Liberal finance spokesperson Senator Jane Hume slammed any potential change, claiming it would have a dramatic effect on housing supply across the country.
“When we looked at this policy in 2019 when a then Shorten-led Labor opposition was proposing changes to negative gearing, the Coalition worked out that, in fact, if you scale back negative gearing, it can have dramatic effect on supply,” Hume said.
“If you take landlords out of the system, all that happens is that rent goes up. I was down in western Victoria on Monday, and I walked into a real estate agent, and there’s a sign up saying ‘no rental properties available’.
“You take away negative gearing, as clearly the government are planning to do, you are going to have a dramatic impact on rental supply. That’s the real problem in this country and would only make it worse.”