Housing focus for Anthony Albanese, but door open to tax changes and bigger reform

Anthony Albanese has declared “in the real world” his Government is focused on delivering tax cuts and making it easier for people to buy home, but has left the door open to future changes to the tax system.

The Prime Minister announced on Monday the Government would start its promised expansion of the scheme that allows first home buyers to get into the property market with just 5 per cent deposit three months earlier than previously flagged.

The scheme means new buyers can get a deposit together quicker and won’t have to pay mortgage insurance because the Government acts as guarantor.

“We’re absolutely determined to do everything we can to fast-track home ownership, fast track improved number of rentals, fast-track social ownership of homes as well,” Mr Albanese said while visiting the house of a new home buyer in Canberra who had used the scheme.

Nationals leader David Littleproud accused the Government of “tinkering around the edges” on housing policy.

“It’s an election promise but it’s not addressing the issues which is that we need to increase supply,” he told Sky News.

Over the weekend, Housing Minister Clare O’Neill announced a pause in changes to the National Construction Code, something that was raised at last week’s economic round table as a way to cut some of the red tape slowing down home building.

The Coalition took a policy to the election to freeze the code for a decade, a plan that was roundly denounced by Labor and many industry bodies.

Mr Albanese insisted on Monday morning that what the Government was doing was different.

“We’re pausing it for the rest of this decade. They had a plan that was for longer, but at the same time they were slashing support for housing,” he said.

The Government continues to be under pressure to do more to address housing affordability, including scrapping or limiting capital gains tax exemptions and negative gearing for investment properties.

Treasurer Jim Chalmers has committed to pursuing tax reforms that tackle intergenerational equity, encourage business investment and simplify the system.

Mr Albanese, who previously said he’d prefer to take big tax changes to an election, pointed out Labor changed its position on the stage three tax cuts last year based on changed economic conditions.

“What we are focused on, in the immediate sense, is the reforms that we took to the election, that includes a tax cut for every taxpayer next year and the year after,” he said.

Asked whether economic conditions changed again, he’d be willing to make further tax changes without taking them to voters, he said if they went “towards making the tax system more efficient and fairer, of course”.

Aruna Sathanapally, the head of the Grattan Institute, told the round table last week that people’s expectations for government services would have to be cut if taxes weren’t raised, but Mr Albanese rejected this notion.

“Academics talk in academic world, what I do is live in the real world,” he said.

“And in the real world, my Government’s focused on delivering for people.”