Story perspectives

Australia Considers Capping Negative Gearing Amid Housing Crisis

2/27/2026

Summary

Story summary

Australian Prime Minister Anthony Albanese's government is reviewing reforms to negative gearing as part of a housing package.
Australian Treasurer Jim Chalmers confirmed options under review, including capping negative gearing to two properties, with no decision yet.
Opposition Leader Angus Taylor criticized the proposal, arguing that higher housing taxes would not boost supply.
The Greens support changes, saying current tax discounts benefit wealthy investors and worsen housing affordability.

History

Historical Context

Since its introduction in 1985, negative gearing has allowed Australian property investors to offset losses against taxable income, significantly benefiting wealthier individuals. By 2021, around 1.3 million Australians utilized this tax strategy, contributing to a $10.9 billion reduction in tax revenue for the government. Currently, Prime Minister Anthony Albanese's administration is reviewing reforms to address housing affordability amid ongoing political debate.

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Story summary

Australian Prime Minister Anthony Albanese's government is reviewing reforms to negative gearing as part of a housing package.
Australian Treasurer Jim Chalmers confirmed options under review, including capping negative gearing to two properties, with no decision yet.
Opposition Leader Angus Taylor criticized the proposal, arguing that higher housing taxes would not boost supply.
The Greens support changes, saying current tax discounts benefit wealthy investors and worsen housing affordability.

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