Fatima Payman labels negative gearing ‘harmful’, urges former Labor colleagues to overhaul tax

Fatima Payman has blasted negative gearing as “unfair” and “harmful”, urging her former Labor colleagues to “stop this madness” and overhaul the tax break.

The WA independent made the comments in a speech to the Senate on Wednesday - just weeks after purchasing a new investment property in Perth.

Senator Payman said she has no plans to negatively gear the one-bedroom unit in Maylands.

“We know this fancy sounding term is just the tax system’s way of handing out massive freebies to people who are already doing pretty well,” Senator Payman said.

“Meanwhile, young Australians are stuck renting, watching house prices skyrocket, wondering if they’ll ever be able to afford their own home.”

Labor went to the 2019 election promising to wind back negative gearing before dropping the politically contentious policy ahead of the 2022 poll.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers have since repeatedly ruled reviving the idea, even after breaking a similar promise on the stage three tax cuts.

Senator Payman never publicly criticised negative gearing during her time as Labor backbencher.

But just as she did with a speech last week showing solidary with WA sheep farmers, Senator Payman has used her newfound freedom on the crossbench to speak out about the policy.

The 29-year-old chose the topic for the speech after asking her Instagram followers what issue they wanted raised in Canberra.

“Let’s be clear, negative gearing isn’t just unfair – it’s harmful,” she said.

“It distorts the housing market, turning what should be homes for families into little collectables in a giant game of monopoly.

In a message to her “fellow young Australians”, she said: “enough is enough – let’s stop this madness and build a fairer system where owning a home is more than just a dream.”