The Australian Greens have said Labor is cracking under pressure from the Greens, renters and first home buyers following reports the party is actively considering changes to negative gearing and the Capital Gains Tax (CGT).
Last week when the Greens moved to delay a vote on Labor's Help to Buy bill to allow more time for negotiations, they told the government they were seeking to wind back negative gearing and the CGT.
And now it appears the government may be prepared to come to the table.
Negative gearing and the capital gains discount put billions of dollars in the pockets of property speculators who go to auctions and bid up the price of housing.
The Greens have been calling for significant changes to negative gearing and capital gains tax discounts for successive election cycles. At the 2022 election the Greens called for negative gearing to be scrapped beyond a single investment property, and limits put on the capital gains tax discount.
With the delayed vote on Help to Buy expected in November, the Greens say the government now has two months to get this right, and they might have a deal.
As stated by Leader of the Australian Greens, Adam Bandt MP:
"Last week the Greens told Labor we wanted to wind back negative gearing and capital gains tax discounts as part of passing the government's weak housing bill.
"Labor said it was impossible. Now they admit it's possible. They must commit to doing it.
"These unfair tax handouts are driving the rental and housing crisis. They help wealthy property investors buying their seventh property and hurt renters trying to buy their first home.
"Nothing changes if nothing changes.
"Labor needs to stop tinkering around the edges and instead work with the Greens to fix the broken housing system. Changing these unfair tax handouts is the kind of reform that could start to fix the housing crisis and see Labor's weak housing legislation pass the Senate."
As stated by Australian Greens housing spokesperson, Max Chandler-Mather MP:
"The party of Labor landlords is cracking under pressure from the party of renters.
"After pretending it was impossible, all of a sudden under pressure from the Greens, millions of renters finally have some hope, as Labor is actively considering changes to negative gearing and CGT.
"If Labor gets this right it could be light at the end of the tunnel for millions of renters who are losing hope they'll ever be able to buy a home.
"Labor went from refusing to negotiate with the Greens on negative gearing and CGT, to actively considering changes.
"It is good to see negotiations may have finally begun to scrap the tax handouts denying renters the chance to buy a home. We have two months to get a deal done. Let's do this.
"As it stands, Labor's Help to Buy scheme will drive up house prices and may help no one. We're glad to see Labor has finally come to their senses and is getting serious about working with the Greens on a housing policy that will actually tackle the scale of the crisis."
