Australian Government Defends Housing Tax Reforms Amid Affordability Debate

Housing Minister Clare O'Neil said the government’s aim is not to lower house prices but to achieve “sustainable price growth,” rejecting claims that recent tax reforms are the main driver of market changes. The Labor government’s budget announced revisions to negative gearing and capital gains tax, alongside first‑home buyer schemes, arguing they will modestly improve affordability and add rental households.

O'Neil told ABC’s Insiders that “our government is incredibly proud of this program,” noting that about 260,000 Australians have benefited from a five‑percent deposit scheme and that defaults remain “vanishingly small.” She emphasized that interest‑rate movements, not the tax changes, are the chief influence on house prices and that increased supply will eventually ease rental pressures.