Is the government changing negative gearing or capital gains tax in this budget?

The Prime Minister has rejected current media speculation about specific changes to negative gearing and capital gains tax, calling the reports “all wrong.” He has not, however, provided detailed confirmation of what, if any, changes to property tax concessions will be included in the May 12 budget.

What does Albanese mean by an “aspiration”‑focused tax approach?

When the Prime Minister says the tax approach will be framed around “aspiration,” he is signalling an emphasis on policies that support people’s economic ambitions, particularly younger Australians trying to buy their first home. The article notes that he linked this framing to housing affordability but avoided outlining precise tax measures.

What is happening to house prices across different cities?

According to the article, April data show dwelling values fell by 0.6 per cent in Sydney and Melbourne. In contrast, prices continued to rise in Brisbane and Perth, where median dwelling values reached about $1.12 million and $1.04 million respectively.

Where does the 33,000‑home shortfall come from, and what is the government doing about it?

The article attributes the estimate of the housing pipeline shrinking by about 33,000 homes, relative to earlier forecasts, to the National Housing Supply and Affordability Council’s State of the Housing System 2026 report. In response to these pressures, the federal government has signalled incentives for states that speed up planning and zoning reforms, including a $72.5 million payment to New South Wales aimed at boosting housing supply.

Albanese pushes ‘aspiration’ message as debate over investor tax breaks heats up

Q: If national prices are still rising, why is there concern about the housing market?

National dwelling prices rose by about 0.3 per cent in April, but analysts cited in the article say momentum is being dampened by higher interest rates and elevated construction costs. These factors are making it harder to finance and deliver new housing, even as prices continue to edge higher overall.

Written by Isaac FrancisPublished May. 1 2026

Prime Minister Anthony Albanese has downplayed mounting speculation about changes to negative gearing and capital gains tax ahead of the May 12 federal budget, describing recent media reporting as “all wrong”.

He said the government’s tax approach would be framed around “aspiration”, including supporting younger Australians who want to buy a home, but declined to spell out what, if any, changes might be made to property tax concessions.

The comments come as new housing data point to diverging conditions across the country.

April figures show dwelling values in Sydney and Melbourne edging 0.6 per cent lower, while prices in Brisbane and Perth continued to rise, lifting median values in those cities to around $1.12 million and $1.04 million respectively.

Nationally, prices still grew by about 0.3 per cent, but analysts say higher interest rates and elevated construction costs are weighing on momentum.

Those pressures are reflected in the National Housing Supply and Affordability Council’s State of the Housing System 2026 report, released on April 30, which estimates the projected housing pipeline has already shrunk by about 33,000 homes compared with prior forecasts.

In parallel with budget preparations, the federal government has flagged incentives for states that accelerate planning and zoning reforms, including a $72.5 million payment to New South Wales tied to measures aimed at lifting housing supply.

Perguntas frequentes

Is the government changing negative gearing or capital gains tax in this budget?

What does Albanese mean by an “aspiration”‑focused tax approach?

What is happening to house prices across different cities?

If national prices are still rising, why is there concern about the housing market?

Where does the 33,000‑home shortfall come from, and what is the government doing about it?