Speculation around changes to negative gearing and capital gains tax has intensified ahead of the federal budget, with Treasurer Jim Chalmers signalling no final decisions have been made as housing pressures continue to build.
Speaking amid growing debate about affordability and investor incentives, Mr Chalmers cautioned against reading too much into pre-budget reports.
“When we’re only less than two weeks from the budget, there’s always a lot of speculation,” he said. “We haven’t finished the budget yet.”
The comments come as housing remains a central economic issue, with rising costs and tighter borrowing conditions affecting both buyers and renters. At the same time, inflation pressures linked to global factors, including higher fuel prices, are feeding into household budgets and shaping expectations around interest rates.
Mr Chalmers said the government was still working through its approach, including potential changes to tax settings and supply measures, while keeping a focus on access to home ownership.
“There are some issues of intergenerational fairness that we’re very focused on,” he said. “And one of those issues is around whether or not young people can get a toehold in the housing market.”
“There are some issues of intergenerational fairness that we’re very focused on. And one of those issues is around whether or not young people can get a toehold in the housing market”
He acknowledged concern about declining ownership rates among younger Australians. “I think a lot of us are very concerned about, over time, the way that there are fewer and fewer younger people who are able to buy their own homes.”
While speculation has centred on negative gearing and capital gains tax concessions, Mr Chalmers said the scale of potential revenue from such changes had been overstated.
“Some of the changes that you’re talking about… would raise nowhere near the sorts of dollars that you just referenced,” he said.
Housing supply remains a priority, but the Treasurer said broader policy settings are also being assessed as part of the budget process.
“So, housing supply is the main game,” he said. “But within that, we want to make sure that people can actually get a toehold in this market as well.”
Concerns have been raised that any shift in investor incentives could affect rental prices. Mr Chalmers said the impact would depend on final policy design.
“It depends a bit on the policy,” he said. “The budget’s not settled yet… it’s hard to answer those kind of specific questions about a budget which isn’t finished yet.”
With the budget due in less than two weeks, the direction of housing policy remains uncertain, even as affordability and access continue to dominate the economic debate.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
