Coalition might keep negative gearing, CGT changes they oppose to pay for pledges

The Coalition might bank any revenue generated from changes to negative gearing and capital gains tax rather than campaigning to reverse them, potentially cementing the reforms and handing Opposition Leader Angus Taylor billions to offer in tax cuts at the next election.

Opposition housing spokesman Andrew Bragg will use a speech on Tuesday to link low levels of home building to high migration, promise to cut down the housing construction code to nearly 200 pages, and explore returning to means-testing Labor’s 5 per cent deposit program. He did not offer details on the changes.

Housing is expected to be a top agenda item in the federal budget in May as the government ponders tax tweaks and fresh incentives for states to build more homes. Prime Minister Anthony Albanese and Treasurer Jim Chalmers have pitched a fairer housing market and a broader “resilience” agenda as a riposte to the rise of One Nation, which is harnessing voters’ anger about living standards.

The opposition is debating how firmly to oppose Labor’s proposals on property investment, as reported by this masthead last week.

Some MPs want the Coalition to promise to repeal any changes should they win the next election in some shock swing in the polls. Others, particularly younger MPs on both the left and the right of the opposition, would prefer not to vigorously oppose the reforms, in a signal to renters that the Coalition understood their plight.

A smaller minority of Liberal figures, including former Menzies MP Keith Wolahan, want the opposition to propose a crackdown on property speculation.

Liberal frontbencher Andrew Hastie said late last month the Coalition should give due consideration to any reform proposals.

In contrast, Taylor came out hard earlier in March describing the tax ideas proposals as an “assault on aspiration”. MPs are concerned Taylor has boxed himself in, possibly making the same mistakes as Peter Dutton and Sussan Ley, who often pledged to reverse policies.

Bragg echoed Taylor in saying that the opposition would never support tax increases because “higher taxes in housing isn’t going to support more houses”.

But, he added, if the government received support from the Greens, as is likely, to enshrine what he referred to as “gimmicks”, then the opposition must consider whether to repeal the laws or let them stand.

“If they get it through, then you’ve got to look at what we do,” he said, noting the exact details of Labor’s proposals were unknown. “I get there’s a lot of people who do not agree, but [supporting tax increases] is not a serious position we could adopt.”

In his speech to the Housing Industry Association, Bragg will claim that the cost of taxes and regulation made up more than half the cost of a home, accusing the government of employing “gimmicks” in housing policy rather than increasing supply. Labor says it is spending much more on housing than the Coalition did in government, including $3 billion in incentives in last year’s budget.

The government’s 5 per cent deposit scheme, Bragg said, was pushing up prices for entry-level homes at a time when supply was not keeping up.

Last year, this masthead revealed dysfunction at the top of Housing Australia, the agency tasked with delivering the government’s housing agenda. The government said the organisation is now in better shape and there have been personnel changes.

Bragg is proposing US Congress-style Senate hearings to test the fitness of individuals to run agencies such as Housing Australia.

“It would give the parliament and the public a chance to assess whether an appointee understands their brief, is up to the task and can effectively lead their agency,” he will say, according to speech notes.

“With a staff turnover of over 25 per cent in 12 months to August 2025, and four Work Health and Safety cases involving Housing Australia, it is clear that there are serious cultural and organisational issues plaguing the agency and its ability to provide value for taxpayers.”

A spokesman for Housing Minister Clare O’Neil, who announced a deal with the ACT on Monday to “unlock” 4900 homes as part of an election pledge to deliver up to 100,000 homes, said Bragg had not released any serious policies.

“They just block and complain,” the spokesman said. “Even Andrew Bragg admits they’ve spent more time talking about themselves than actually doing anything.”

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