The prime minister has refused to rule out changes to negative gearing and other property taxes while facing a barrage of questions at a press conference in Tasmania.
Anthony Albanese did not say if he would change the system which allows Australians who own multiple investment properties to minimise their tax.
The Sydney Morning Herald reported on Wednesday that the Albanese government had sought advice from the Treasury department on potential changes to negative gearing and capital gains tax concessions.
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When asked directly about that speculation Mr Albanese said he wanted his public servants to always be thinking about ways to better the nation.
“I didn’t confirm that (change to negative gearing). Treasury I’m sure, like other departments, look at a range of proposals,” he said.
“I want a public service that is full of ideas.
“From time to time I’m sure the public service are looking at ideas because we value them.”
Treasurer Jim Chalmers, also asked about the advice, was more definitive in his denial.
“We’ve got a housing policy, that’s not in it. It’s not unusual for governments to get advice from time to time from departments, on issues that are in the public domain,” he said.
Negative gearing is a tax minimisation strategy used by homeowners who have multiple investment properties. Expenses associated with a property, including interest, that are greater than the income earned from the asset, can be deducted against the owner’s other income.
It is a controversial issue for Labor after former leader Bill Shorten took changes to both negative gearing and the Capital Gains Tax to the 2019 federal election, which, in part led to a shock defeat against Scott Morrison.
When asked whether he would rule out changing the property tax system, this term or next, the prime minister deflected to his government’s current policies on housing.
“Our focus is on supply,” Mr Albanese said.
“We have our housing policy out there for all to see that’s currently being blocked.
“What our government is considering is fixing housing supply by getting our legislation through the Senate.”
The government’s stalled agenda includes a help-to-buy scheme where property buyers only need a 2 per cent deposit, but the government takes an equity stake in the house of up to 40 percent.
The government is also considering a bill that alters tax arrangements for developers to encourage investment in build-to-rent housing.