It’s Time to Review the Damage – And Admit they got it Wrong!

We call on the Australian Government to urgently reconsider the changes to negative gearing and capital gains tax announced in the 2026–27 Federal Budget.

Australians deserve housing policies that help people into home ownership without unnecessarily hurting those who have already made enormous sacrifices to get there.

Australia's housing market is already falling.  Property values and housing turnover have declined, and the effects are being felt well beyond investors — by homeowners, recent first-home buyers and the many Australian businesses and workers whose livelihoods depend upon a healthy housing market. 

I am deeply concerned about what these tax changes could add to that downward pressure and the consequences for property values, housing investment, rental supply, construction, employment and the general confidence across the broader Australian economy.

Of particular concern are recent first-home buyers who worked, saved and sacrificed to enter the market at historically high prices, often taking on substantial mortgages, only to see housing conditions deteriorate shortly afterwards.  Some now face the frightening prospect of owing close to — or potentially more than — their homes are worth.  Potentially crippling if they are forced to sell.

Australians who struggled to purchase a home should not become unintended casualties of policies designed to make housing more affordable for someone else.

The Government argues that its reforms will reduce investor competition for established properties, redirect investment towards new housing and help around 75,000 additional Australians achieve home ownership over the next decade. (Treasury Ministers)  

We support the goal of helping more Australians own a home. But surely there are more targeted ways of achieving it without risking the financial security of Australians who have already worked so hard to buy a home.

Rather than relying on broad changes to negative gearing and capital gains tax, the Government should consider targeted assistance for first-home buyers. For example, eligible first-home buyers could receive tax relief on a portion of their mortgage interest during the difficult early years of home ownership.

Other targeted measures could encourage new housing construction, help Australians build deposits and reduce the financial burden of entering the property market without unnecessarily destabilising existing housing investment.

Surely we can help one generation of Australians into home ownership without financially harming — or potentially crippling — another.

Australians are entitled to ask:  at what cost will the present reforms achieve their objective?

What will they ultimately mean for existing homeowners and recent first-home buyers?  For renters if investment in established properties declines?  For builders, tradespeople, property professionals, conveyancers, removalists and retailers?

Falling housing turnover is already flowing through to businesses dependent upon Australians buying, selling and moving homes. Reuters estimates that reduced housing transactions are removing between $355 million and $710 million every month from housing-related businesses. 

That means less money flowing through Australian businesses and communities at a time when many households and businesses are already under considerable cost-of-living pressure.

These are not simply numbers on a Treasury spreadsheet. They represent people's homes, savings, retirement plans, businesses, jobs and financial security.

We call on the Australian Government and Parliament to urgently review the real-world consequences of these reforms, publish comprehensive modeling of their effects on homeowners, first-home buyers, renters, investors, property values, rental supply, construction and employment, and repeal these changes and restore the previous negative gearing and capital gains tax arrangements, while pursuing more targeted measures to assist first-home buyers and increase housing supply.

We need the Australian Government to get housing policy right.  This is a major tax experiment with consequences that reach far beyond property investors.   The future prosperity of Australia depends upon people having the confidence to buy a home, invest, build businesses, employ others and plan for their future.

If you believe these changes should be reconsidered before further damage is done, please add your name. There is still time to change direction.

Helping tomorrow's first-home buyer should not require sacrificing the financial security of the Australian who have struggled and sacrificed  before them.