Anthony Albanese signals end to soaring property values to help first home buyers
Australian Prime Minister Anthony Albanese announced reforms to negative gearing and capital gains tax discounts to curb soaring property prices, which have risen 75% in Adelaide, 120% in Brisbane, and 109% in Perth over five years. The government argues these changes will make homeownership more accessible for first-time buyers by slowing unsustainable price growth linked to tax incentives introduced under John Howard in 1999.
Australia’s Prime Minister Anthony Albanese has signaled a shift to curb rapidly rising property values, targeting tax policies that have fueled home price surges over the past two decades. Since 1999, house prices have increased by over 400%, outpacing wage growth by more than double, according to Albanese, who cited the need to address generational inequality in homeownership. The government plans to reform negative gearing and capital gains tax discounts for investors, arguing these measures have disproportionately benefited property speculators while locking out younger Australians. The changes come as property values in major cities have skyrocketed: Adelaide saw a 75% increase, Brisbane 120%, Perth 109%, and Sydney 57% over the last five years. Albanese linked the issue to reforms introduced by former Prime Minister John Howard in 1999, which were intended to boost share market investment but instead accelerated property speculation. He stated that the tax breaks widened the gap between generations, making homeownership increasingly unattainable for first-time buyers. The government insists the reforms will modestly slow price growth, though analysts predict a 9% market correction due to rising interest rates. Even in a downturn, cities like Adelaide, Brisbane, and Perth—where prices surged over 80%—would still see homeowners retain significant value gains. Critics, including Liberal MP Andrew Bragg, have accused the opposition of avoiding direct answers on whether the government wants prices to fall, with Bragg calling for more transparent leadership on housing policy. Opposition confusion over the reforms has intensified, with Bragg accusing Shadow Attorney-General Clare O’Neil of misrepresenting Labor’s stance. The debate highlights deep divisions over whether property price stability should prioritize existing homeowners or aspiring first-time buyers. Albanese’s reforms mark a deliberate attempt to reshape Australia’s housing market, framing affordability as a key electoral and economic priority.
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