ABC News Daily Is the budget about to smash property investors?
9 snips
May 6, 2026 
Melissa Clarke, AM presenter and political correspondent, breaks down federal politics, taxation and housing. She walks through negative gearing and possible reforms. She explains the capital gains tax discount and how tweaks could affect investors. She discusses political calculus, generational inequality and the risks of changing a major election promise.
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PM's Public Promise Then Reversal
- Anthony Albanese repeatedly promised not to change negative gearing or the capital gains tax discount but is now preparing to reverse that stance.
- Melissa Clarke highlights multiple public declarations where Albanese said negative gearing was “off the table,” then labels the budget move a backflip.
How Negative Gearing Actually Works
- Negative gearing lets landlords deduct rental losses against all their income, benefiting over a million Australian investors.
- Melissa Clarke gives a concrete example: $20,000 rent vs $29,000 costs creates a $9,000 deductible loss, lowering taxable income.
Expect Targeted Negative Gearing Reforms
- Expect the government to consider targeted changes not a wholesale ban, like caps per investor or limiting deductions to new builds.
- Melissa Clarke lists likely options: caps on number of negatively geared properties, or restricting deductions to newly built homes.