Labor leader Anthony Albanese has come under attack from both the left and the right – the Greens and the Liberals – for saying ‘negative gearing is a good thing’.
During Sunday night’s election debate, Prime MInister Scott Morrison questioned Opposition Leader Anthony Albanese on how his policies had changed since 2019
Mr Morrison took aim at Labor’s shift in positions on negative gearing, a policy which has been blamed by some experts for driving up house prices, and locking young Australians out of the market.
‘Anthony, even in the last three years you have been for the abolition of negative gearing and against the abolition of negative gearing,’ Mr Morrison said.
‘Given you have changed your mind on things you were passionately against, how can Australians believe you are now for them?’
Mr Albanese replied: ‘I supported the Labor Party at the last election. We had a range of policies that we put forward that were not successful.
‘When I became Labor leader, on day one, I said that under my leadership we would be defined by being a Labor leader not by being the Opposition leader.
‘That all policies would start anew, and on the basis of the positions that we would come to when I announce to them.
So on housing, for example, we have come up with a better way. The Housing Australia Future Fund.’
Mr Morrison: ‘So is negative gearing now a good thing?’
Mr Albanese: ‘-With the “help to buy” scheme …Negative gearing is a good thing. We had a policy that we took to the election where we were not successful. ‘
Mr Morrison: ‘So is that the way you are approaching it? It is just not popular?’
Negative gearing allows investors to deduct money lost to mortgage repayments on their tax returns. It has been criticised as a key cause of Australia’s housing crisis.
The Labor party dropped its policies to limit negative gearing and halve the 50 per cent capital gains tax in July last year after losing two consecutive federal elections on the policies in 2016 and 2019.
Greens leader Adam Bandt weighed in on the issue on Monday, taking exception to Mr Albanese’s ‘good thing’ comment in particular.
‘Last night Anthony Albanese said negative gearing is “a good thing”. There’s nothing to celebrate about pushing up housing prices and locking young people out of owning a home,’ he wrote.
The Greens’ plan is to stop the $63b in handouts to the very wealthy & property moguls, limit negative gearing to one property only, and build 1m affordable homes that people can rent for 25% of their income or buy into for $300,000.’
Mr Albanese has been the proud advocate of his party’s proposed housing schemes that will aim to tackle Australia’s housing crisis.
Labor’s Housing Australia Future Fund will look to build 30,000 new social housing properties in the next five years while the Help to Buy Scheme will help young, low-income earners break into the property market.