Polling by Talbot Mills, a Labor-affiliated firm, reveals limited voter support for restricting negative gearing, as the federal government indicates it will not pursue changes to the policy.
Conducted on a sample of 1,000 people, the poll found that fewer than half of respondents support limiting negative gearing, despite broader backing for other housing initiatives like land development and first-home buyer support.
David Talbot of Talbot Mills noted that policies to increase housing supply and support first-time buyers have more traction with the public, with 68% of voters favouring land release for development and 73% backing first-home buyer assistance
Treasurer Jim Chalmers reinforced this approach by focusing on supply-side solutions, calling on the Senate to pass a shared equity scheme designed to expand housing access. Mr Chalmers stated, “We do have a strongly held view about our policy position because the primary challenge in housing right now is housing supply,” according to the Australian Financial Review (AFR).
He emphasised that negative gearing and capital gains tax (CGT) discounts were not central to the government’s agenda. This stance aligns with Prime Minister Anthony Albanese’s earlier comments, signalling a preference for increasing supply rather than altering tax benefits for property investors
Meanwhile, the Greens have called for phasing out negative gearing and CGT discounts, citing new Parliamentary Budget Office modelling.
The data shows that the top 10% of earners receive 80% of CGT discount benefits and 43% of negative gearing benefits, valued at over $4 billion and nearly $3 billion, respectively. Greens housing spokesman Max Chandler-Mather argued that these tax policies enable investors to outbid first-home buyers, contributing to high property prices, and urged the government to address these concessions in exchange for support on housing legislation
Labor’s commitment to a supply-driven policy is already being adopted in states like Victoria and NSW, where ambitious planning reforms are underway.
In response, the Coalition has also pushed for policies to address supply by focusing on greenfield developments rather than infill projects, which face local opposition.
