Triguboff Says Housing Policies Are Choking Buyers and Builders Ahead of Budget

TL;DR: Meriton’s Harry Triguboff warns that existing housing policies are squeezing both buyers and builders, and industry leaders fear upcoming budget changes to tax incentives could further hurt small investors.

The federal budget is set to dominate headlines this week, with speculation that reforms to negative gearing and capital gains tax (CGT) will reshape the property market. Negative gearing allows investors to deduct rental losses from taxable income, while the CGT discount reduces tax on profits from property sales. Any curtailment could alter the calculus for “mum‑and‑dad” landlords.

Harry Triguboff, founder of Meriton and Australia’s largest apartment developer, said the current policy mix is “choking both buyers and builders.” He argued that governments, the Reserve Bank of Australia, and the Australian Prudential Regulation Authority must collaborate with builders to lower construction costs and boost supply. Triguboff warned that without decisive action, the market will remain constrained.

Century 21 owner Charles Tarbey echoed the concern, warning that proposed changes to negative gearing and CGT would penalise small‑scale investors. Tarbey said the reforms could force landlords to raise rents, reduce property values, and diminish the appeal of real‑estate as an investment. He described the government’s approach as “an outstanding job at removing the desire for investment in real estate.”

Policy insiders expect the budget to limit negative gearing for investment properties while exempting new home purchases. Rumours also suggest a partial rollback of the 50 % CGT discount, with new homes possibly spared. Prime Minister Anthony Albanese has publicly denied plans to eliminate these incentives, but the debate persists.

If the budget curtails tax benefits, small investors may exit the market, tightening rental supply and pushing rents higher. Builders could face reduced demand for new apartments, slowing construction activity. Conversely, limiting deductions might free up capital for other sectors, potentially easing government debt pressures.

The housing sector will watch the budget’s final language closely. The next few weeks will reveal whether policy tweaks can revive supply without stifling investment, or if the market will face a new wave of constraints.