Coalition could bank savings from Labor changes rather than seek to repeal them
The coalition could bank the revenues from negative gearing and changes to capital gains tax rather than campaigning for the reversal, potentially strengthening reforms and giving Opposition Leader Angus Taylor billions of dollars to bid for tax cuts at the next election.
Opposition housing spokesman Andrew Bragg will link low levels of housebuilding to high immigration in a speech on Tuesday, pledge to reduce housebuilding legislation to around 200 pages and explore a return to means testing for Labour’s 5 per cent deposit scheme. He did not provide detailed information about the changes.
Housing is expected to be a top agenda item in the federal budget in May as the government considers tax adjustments and new incentives for states to build more homes. Prime Minister Anthony Albanese and Chancellor of the Exchequer Jim Chalmers have laid out a fairer housing market and a broader “resilience” agenda in response to the rise of One Nation, which has harnessed voter anger over living standards.
The opposition is debating how decisively to oppose Labour’s property investment proposals, as reported in this imprint last week.
Some MPs want the Coalition to promise to repeal any changes if it wins the next election amid a shock surge in polls. Others, particularly younger MPs on both the left and right of the opposition, will choose not to strongly oppose the reforms to signal to tenants that the Coalition understands their plight.
A smaller minority of Liberals, including former Menzies MP Keith Wolahan, want the opposition to propose a crackdown on property speculation.
Liberal frontbencher Andrew Hastie said late last month that the Coalition should consider any reform proposals.
By contrast, Taylor issued a scathing statement in early March, describing proposed tax ideas as an “attack on wills.” MPs fear Taylor is likely backing himself into a corner by making the same mistakes as Peter Dutton and Sussan Ley, who have vowed to reverse the policies.
Bragg echoed Taylor when he said the opposition would never support tax increases because “higher taxes on housing will not support more homes.”
But he added that the opposition should consider repealing the laws or keeping them in place if the government gets support from the Greens to promote what he calls “trickery”.
“If they achieve that, then you have to look at what we’re doing,” he said, noting that the exact details of Labor’s proposals were unknown. “I understand there are a lot of people who don’t agree, but [supporting tax increases] “It is not a serious position that we can adopt.”
In his speech to the Housing Industry Association, Bragg will claim that the cost of taxes and regulations account for more than half the cost of a house and accuse the government of using “gimmickry” in housing policy rather than increasing supply. Labor says it spends far more on housing than the Coalition does on government, including $3 billion in incentives in last year’s budget.
Bragg said the government’s 5 per cent deposit scheme had increased the prices of entry-level homes at a time when supply was inadequate.
Last year the imprint exposed dysfunction at the top of Housing Australia, the agency tasked with delivering the government’s housing agenda. The government said the organization was now in better shape and staff changes had been made.
Bragg proposes US Congress-style Senate hearings to test the suitability of individuals to run agencies such as Housing Australia.
“This will give parliament and the public a chance to assess whether the appointee understands their briefing, is fit for duty and can lead their agency effectively,” he will say, according to his speech notes.
“With over 25 per cent staff turnover in the 12 months to August 2025 and four Occupational Health and Safety incidents involving Housing Australia, it is clear that there are serious cultural and organizational issues that are suffering from the agency and its ability to deliver value to taxpayers.”
A spokesman for Housing Minister Clare O’Neil, who announced a deal with the ACT on Monday to “unlock” 4,900 homes as part of a commitment to deliver up to 100,000 homes, said Bragg had not issued any serious policy.
“They just block and report,” the spokesman said. “Even Andrew Bragg admits that they spend more time talking about themselves than actually doing anything.”
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Paul Sakkal is the Chief Political Correspondent. He has previously covered Victorian politics and won the Walkley award as well as the 2025 Press Gallery Journalist of the Year award. Contact him securely on Signal @paulsakkal.14.Connect with: X or email.
