Coalition backs tax cuts but opposes Labor housing tax reforms in budget showdown
The Coalition has offered to back Labor’s tax cuts while vowing to block its controversial housing reforms.
The Coalition has drawn a line in the sand over Labor’s housing reforms, offering to back tax cuts while vowing to oppose what it has branded “toxic taxes” amid growing political backlash to the Federal Budget.
Appearing on Sunrise on Wednesday, Coalition Senate leader Michaelia Cash said the Opposition would seek to split Labor’s legislation, allowing Parliament to pass tax offsets while rejecting changes to negative gearing and capital gains tax concessions.
“We will actually help Labor help themselves,” Ms Cash said.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.“We can all vote for the tax offset and the business expense offset, and then we can all vote no to Labor’s toxic taxes.”
The comments came as Housing Minister Clare O’Neil was forced to defend the government’s reforms and pushed back on claims they were creating uncertainty in the housing market.
Ms Cash accused Labor of misleading voters before the election and argued the reforms had undermined confidence among homeowners, investors and builders.
“You can’t lie to the Australian people, Clare, and then not take responsibility for what’s now happening in the housing market,” she said.
Ms O’Neil acknowledged Australians were under financial pressure but said the budget was designed to help workers and first-home buyers who had been locked out of the market.
“This is a budget that does some tough things,” she said.
“When I go back to my community, I talk to Australian workers who need a tax cut ... I talk to young people across my community who would absolutely have owned their own home a generation ago.”
The pair repeatedly clashed over the potential impact of Labor’s housing reforms on property values, with Sunrise host Nat Barr pressing the Housing Minister on whether she wanted house prices to rise or fall.
Ms O’Neil argued the effect of the government’s tax changes on prices would be modest and said the reforms would help move 75,000 renting households into home ownership.
“What we want to see is sustainable growth,” she said.
Asked directly whether she wanted prices to increase, Ms O’Neil said she did not support the sharp growth seen over the past two decades but still wanted property values to continue rising at a sustainable rate.
The exchange underscored Labor’s delicate balancing act as it attempts to improve housing affordability while reassuring existing homeowners that its reforms will not erode the value of their biggest asset.
