Thanks for following along with our live coverage of the fallout from this year’s federal budget.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers have been doing the media rounds all day to promote the measures handed down in last night’s budget – and to defend breaking the government’s promise not to change negative gearing and the capital gains tax discount.
Those generous tax breaks will be wound back from next July, but the duo have insisted the contentious move is the right one.
“What’s clear is we need to do more, because there’s nothing more aspiring than the legitimate aspirations Australians have to own their own home, and they were being locked out,” Albanese told Today this morning.
Chalmers said the government had taken a more difficult approach than maintaining the policies, but that the change would benefit the nation.
“It would be worse for homebuyers and particularly for younger people if we left these arrangements unattended. It would be easier, politically, frankly,” he said.
“Obviously there will be politics played around this.”
As you’d expect, not everyone agrees. The Coalition has slammed the move and promised to oppose it in parliament – although with the Greens likely to back the legislation, that probably won’t matter – while some pundits from the real estate industry say it will lead to higher rents.
Chalmers also hinted further tax cuts could be handed down in future budgets, with a particular focus on bracket creep.
He also said a road user charge – which was something of a surprise admission from last night’s budget – remains on the government’s agenda.
