The Prime Minister appears to have cooled on the idea of changes to negative gearing after initially leaving the door open. Anthony Albanese now insists the government just wants to get on with building more houses.
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00:00Well, throughout today, and the Prime Minister has made several appearances on both TV and
00:07radio earlier in the morning, we have heard him give much greater focus to particular
00:14modelling that was developed in 2019 for the Property Council.
00:19He says that that raises questions that he's yet to see answered about what potential impact
00:26changes to negative gearing could have on housing supply.
00:31He says that that particular study did raise questions about whether it would have a negative
00:37impact on overall housing supply.
00:39Looking at the detail of that modelling, it did in fact find that yes, there would be
00:46an impact on supply, but it would be very small and be outweighed by the impact on decreasing
00:55demand from investors on housing.
00:59Regardless, this is what the Prime Minister has been saying.
01:03And the issue of negative gearing is one of supply.
01:07Will it add to supply or will it decrease supply?
01:10The figures and research that has been produced by organisations like the Property Council
01:16indicate that it would reduce supply and therefore not contribute to solving the issue.
01:24And that's the issue.
01:25One thing that hasn't changed, although there has been a slight change in focus around discussions
01:30on this topic, is that the Prime Minister has not still closed the door on the prospect
01:36of any change heading up to the election.
01:40He says it's not part of their policy, but that's now.
01:44And of course, we've seen similar language in the past, particularly around discussions
01:48of stage three tax cuts, which the government did go on to change.
01:53So a very interesting choice of language here and something that we will continue to
02:00pay close attention to, as will many.