Housing groups push MPs to approve Labor’s negative gearing overhaul

TL;DR: Housing advocates demand rapid approval of Labor’s negative‑gearing changes, warning landlords against rent hikes while highlighting a projected $2 weekly rent increase for median renters and 75,000 new first‑home buyers.

The Australian Council of Social Service, Everybody’s Home, Better Renting and National Shelter released a joint statement urging parliament to pass the government’s negative‑gearing and capital‑gains‑tax reforms. The groups argue the measures will level the playing field for renters and young buyers, while condemning any attempt by landlords to use the changes as a pretext for higher rents.

Labor’s plan limits new negative gearing – a tax deduction that reduces taxable income from rental losses – to newly built properties and allows existing landlords to keep the benefit. The capital‑gains‑tax adjustment will also apply only to future purchases. Treasury modelling predicts the reforms will cut the construction of new homes by 35,000 over ten years, but the median renter would face an additional $2 per week in rent.

Proponents point to a different set of outcomes. The same Treasury analysis forecasts 75,000 more first‑home buyers and 30,000 extra new homes built within a decade, driven by incentives for new‑build investment. Housing minister Clare O’Neil says the policy will curb rent growth by steering investor money toward construction rather than existing stock.

Advocates stress that existing landlords retain their tax perks, making any rent increase “opportunistic profiteering.” Maiy Azize of Everybody’s Home called the scare tactics of the property lobby “dishonest” and urged politicians to see through the fear‑mongering. Acoss policy director Jacqueline Phillips added that the current system “supercharged inequality, drove up housing prices, and added little to rental supply.”

Opposition voices, including shadow treasurer Tim Wilson, cite alternative modelling that suggests rent spikes of $160 per week in Sydney and $130 in Melbourne. Labor counters that those figures ignore the grandfathering of existing properties and the focus on new builds.

If passed, the reforms could reshape Australia’s housing market by shifting investment toward construction, potentially easing affordability pressures for first‑time buyers while delivering modest rent relief. The next parliamentary sitting, slated for the coming fortnight, will test whether the cross‑bench support materialises.

What to watch next: Parliamentary debate outcomes and any amendments that could alter the projected impact on rental prices and new‑home supply.