PM flags tax reform to boost home ownership amid global crisis
Prime Minister Anthony Albanese has highlighted a controversial tax reform package to boost home ownership as a way to counter populism; He also promised to rebuild Australia’s fuel stocks and raised the prospect of caps on coal and gas prices if the war in Iran pushes commodity prices up further.
Albanese announced he would put housing affordability at the center of his agenda, giving his strongest signal yet that he plans to roll back the capital gains tax cut and its negative effects. Labor could also unveil new procurement measures to meet its target of building 1.2 million homes, which it is about to miss.
Senior government sources, who asked to remain anonymous to speak publicly about positions in the cabinet, said Mr Albanese was committed to pushing ahead with changes to tax breaks for investors in the May budget. Since the start of the war, some had feared that Albanians would back down on tax changes due to demoralized voters.
In new language he plans to use in his speech in January, which was upended by the Bondi massacre, the Prime Minister said the housing market required “continuous reform” and that there was “our way out of this global crisis”, linking this to his 2022 election slogan of “no one left behind and no one left behind”.
“There is no security in maintaining a status quo that doesn’t work for people,” Albanese said, while failing to rule out inflationary cost-of-living relief to protect households in the coming months.
“This is how we were able to avoid the worst economic and social divisions that were at play elsewhere.”
Labor did not campaign for any changes to property taxes at last year’s election, leaving the issue open to attack from the opposition. Opposition Leader Angus Taylor described the proposals as an “attack on aspirations”, but frontrunner Andrew Hastie suggested the opposition should be open to reforms as the frayed Coalition looks to build support among new groups of voters.
Finance Minister Jim Chalmers has been pressing the government not to shy away from bigger reforms and Albanese repeated the language for the first time on Thursday.
The cabinet did not make a final decision on the tax reform package as the war delayed major calls until closer to the budget; This package may include either or both adverse effects and capital gains.
A speech by US President Donald Trump signaling the war would end within weeks, but not before bombing Iran “back to the stone age”, formed the backdrop to Albanese’s National Press Club speech on Thursday, in which he questioned what Trump’s “end point looks like”.
Albanese said Trump’s claim that the US was nearing completion but failed to cool markets was consistent with Australia’s recent calls to end the war.
Albanese could not rule out further stimulus just days after the Coalition adopted a policy of cutting fuel duty. While demands to protect households from crisis are increasing, they also face pressure to fight inflation. High government spending at record levels will increase pressure on the Central Bank to raise interest rates and increase the risk of stagflation.
As governments around the world scramble to buy oil ahead of a possible supply gap after May, the federal government is preparing to step up diplomatic efforts to secure the fuel.
Taylor criticized Albanese in a televised address to the nation on Wednesday night, saying: “Australians were waiting for answers and details [but] “They didn’t take either of them.”
Claiming that Albanese had shown a lack of leadership, Taylor used his own television speech to suggest that Labor had initially denied there was a crisis. The ABC has to present its own video message to the opposition leader after the prime minister’s call, as was done when Albanese was opposition leader during the pandemic.
“Unlike the Prime Minister, I will not belittle you,” Taylor said. “Almost all Australians will do the right and responsible things in this crisis.”
After urging people to use public transport in his speech on Wednesday night, Albanese went further on Thursday, saying it was prudent to work from home if possible.
Albanese defended his televised speech after fielding a number of critical questions from reporters who cited complaints from the public that Albanese’s decision to speak to the nation had caused further panic.
“I took the opportunity to speak directly to the nation: this is more important than ever because of the nature of the noise and the conspiracy theories,” Albanese said.
The oil shock revealed Australia’s dependence on imports for more than 90 per cent of its oil and fuel, with low fuel stocks falling below global standards.
Albanese said all options were on the table to ensure higher coal and gas prices “are not reflected in electricity prices”, suggesting Labor could emulate wholesale price caps last used in 2022 to offset the price rise caused by Russia’s invasion of Ukraine.
He said Australia was looking at ideas to boost fuel stocks, including biofuels and other new technologies, and flagged investments in revitalizing oil refineries.
“Strengthening our economic sovereignty, energy security and national resilience. Making the most of our resources and doing more here so Australia isn’t always the last link in the global supply chain,” he said.
Albanese downplayed the possibility of imposing a new tax on gas exports as he looks to Asian partners to continue supplying oil to Australia. Unions and independent MPs are pushing for a tax that would raise billions of dollars and could be used by Labor to fund a corporation tax cut in the budget.
Albanese shot down some of the arguments of advocates who claim gas companies pay a small tax rate.
“Just as we expect the countries that supply us to adhere to existing agreements, we think it is very important to fully fulfill the agreements we have made with the countries in our region,” he said.
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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.
