“SOMETHING DOESN’T FEEL RIGHT!” Natalie Barr gɾills Housing Minister Clare O’Neil over capital gɑins tɑx changes — expσsing a HIDDEN SECRET no one was supposed to notice…
Housing Minister Clare O’Neil grilled on rental fears sparked by CGT changes
Labor has been grilled on its ambitious capital gain tax reform amid reports landlords are taking a controversial step in response to the changes.
Housing Minister Clare O’Neil has refused to answer why Australians are reporting substantial rent hikes despite Treasury estimating an average increase of $2 per week after Labor announced sweeping changes to the capital gains tax and negative gearing.
Treasurer Jim Chalmers confirmed last week the Albanese government would wind back both tax concessions as part of efforts to democratise Australia’s housing and tax systems.
The CGT model will revert to favouring inflation indexation across all asset classes – including investment properties, shares, and businesses – with a one-year grace period before taking effect. The tax break delivered by negative gearing will be restricted to newly built homes from July next year.
Housing Minister Clare O’Neil has defended the CGT changes. Picture: Seven’s Sunrise
Mr Chalmers said Treasury estimated the changes would increase rents by $2 per week.
But Seven’s Sunrise host Nat Barr claimed viewers had already started to report weekly rent increases in excess of $20, less than two weeks after the Treasurer handed down the May 12 budget.
“You reckon Treasury’s right?” Barr asked Ms O’Neil on Wednesday.
The Labor MP responded by saying Treasury’s figures were backed by respected economist Saul Eslake and the Grattan Institute among other key voices in the sector.
Labor says its tax reforms aim to level the playing field for young Australians. Picture: NewsWire / Nicholas Eagar
She was repeatedly interrupted by Nationals senator Bridget McKenzie, who accused the government of “hiding” behind the figures.
Barr pressed Ms O’Neil again, asking: “(Rent is) already going up … this is what Sunrise viewers are saying. Do you reckon the modelling is wrong?”
Ms O’Neil responded by saying she was “really respectful” of people’s experiences.
“But I just repeat to you that for anyone who is in a rental right now, that’s being provided by an investor. The arrangements for negative gearing for those people are grandfathered,” she said.
Senator McKenzie later interjected again to accuse Labor’s migration and fiscal policies of fuelling the housing crisis.
“When you pour in two million people, they need somewhere to live,” she said, before Barr cut her off by saying: “Hang on, Bridget.”
Advocacy groups have backed the changes, saying they will improve housing affordability. Picture: NewsWire / Max Mason-Hubers
The Sunrise host then turned to Ms O’Neil to ask if the reason behind the rent hikes could be because of Labor’s approach to migration and spending.
“Well, that appears to be what Bridget is saying,” Ms O’Neil said.
The Labor MP earlier ruled out condemning landlords for the apparent rent hikes, saying she would not tell landlords or renters “what to do”.
Later, Infrastructure Minister Catherine King accused the Coalition of spreading “misinformation” about the tax changes in a political move she described as “unexpected”.
“I think we always said when you’re trying to make big changes and big important changes to assist people into housing, there are always going to be people who are concerned about those changes,” she told ABC Radio National.
Ms King said the response to the budget was “going as we expected”.
Infrastructure Minister Catherine King and Treasurer Jim Chalmers. Picture: NewsWire / Martin Ollman
“We’ve been out there explaining the changes to people. I think that there’s been a bit of misinformation, which again is unexpected, particularly driven, some of it, by our opponents.”
The Coalition has ruled out supporting the proposed changes.
Shadow Treasurer Tim Wilson told Sky News the reforms would “kneecap” working Australians.
He pointed to outrage from small businesses expressed on social media, most notably through memes, at the inclusion of the sector in the CGT changes.
“Every time a small business of this country stands up and speaks out about this Prime Minister, they’re revealing this government doesn’t understand the economy,” he said.
“And where they want a government punching for them, they have a government punching at them.”
Shadow Treasurer Tim Wilson has accused Labor’s budget of abandoning small businesses. Picture: NewsWire / Martin Ollman.
The Australian Financial Review reported overnight the government was set to fast-track the first tranche of budget legislation through the House of Representatives and would introduce it into parliament in the first week of June.
In response, Mr Wilson accused the government of “ramming the budget through to distract from the problems they are facing … and the uprising from small business owners and investors all around this country”.
The changes to tax concessions broke a key election promise after Prime Minister Anthony Albanese vowed ahead of last year’s federal election not to touch CGT and negative gearing settings.
Source: https://www.news.com.au/entertainment/tv/morning-shows/housing-minister-clare-oneil-grilled-on-rental-fears-sparked-by-cgt-changes/news-story/455d43091030e3e03fec381e69e111b7