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• Australia’s Labor government is facing voter backlash after proposing major changes to property investment taxes in its latest budget.
• The reforms include limiting capital gains tax discounts and negative gearing benefits to address housing affordability and intergenerational inequality.
• Recent polls showed many voters believe the measures could negatively impact the economy, with strong opposition coming from older Australians, homeowners and property investors.
• Despite criticism over breaking earlier election promises on housing taxes, Prime Minister Anthony Albanese remained the preferred leader in one of the surveys.
• Support for the far-right One Nation party increased following the budget announcement, while younger Australians and renters were comparatively less critical of the proposed reforms.
Australia’s centre-left Labor government is facing growing voter dissatisfaction after unveiling one of the country’s biggest property tax reform proposals in decades through its latest federal budget. Advertisement
The government recently announced plans to limit capital gains tax discounts and negative gearing benefits on investment assets as part of efforts to tackle intergenerational inequality and housing affordability concerns. The measures are aimed at reducing investor advantages in the housing market, which critics have long argued favour wealthier and older Australians over first-time homebuyers.
However, the reforms have triggered political backlash, especially because Labor had promised during the 2025 federal election campaign that it would not make changes to housing-related taxes before returning to power for a second term.
A Newspoll survey conducted after the budget release showed that 47% of voters believed the budget would negatively impact the economy. Around 60% of respondents felt the housing tax measures were either a step in the wrong direction or would not improve the situation.
The same poll, which surveyed 1,252 voters, showed the budget recorded a net approval rating of minus 25, making it one of the most unpopular budgets in recent decades. Despite the criticism, Labor’s primary vote remained unchanged at 31%.
Prime Minister Anthony Albanese continued to remain the preferred leader among voters, although his approval rating stayed weak at minus 17%. Opposition leader Angus Taylor saw his approval improve slightly by one percentage point to minus 12%.
Support for the conservative coalition opposition slipped by one point to 20%, while support for the far-right One Nation party increased by three percentage points to 27%, reflecting growing dissatisfaction among sections of the electorate.
Another poll conducted by Resolve, which surveyed 1,800 voters, showed Labor’s primary vote falling three points to 29% following the budget announcement. The survey indicated that much of the voter shift benefited One Nation rather than the opposition coalition, which stood at 23%.
The Resolve poll also showed Angus Taylor moving ahead of Anthony Albanese as voters’ preferred prime minister, leading by 33% to 30%.
According to the polling data, the strongest opposition to the tax reforms came from older Australians, property investors and existing homeowners. Around 40% of respondents within these groups said Labor’s decision to break its earlier election commitment had negatively affected their view of the party.
In comparison, younger Australians and renters appeared less critical of the proposed measures, suggesting broader support among those struggling with housing affordability and rising property prices.
Property tax reforms have historically remained politically sensitive in Australia because of the country’s strong investor participation in residential housing. Negative gearing and capital gains tax concessions have been central features of Australia’s property investment market for years and are widely used by investors to reduce taxable income and improve long-term returns.
Housing affordability has emerged as a major political issue across Australia in recent years amid rising home prices, elevated borrowing costs and low housing supply in several major cities including Sydney and Melbourne. Policymakers have increasingly come under pressure to introduce reforms that improve access to home ownership for younger Australians.
Source Reuters
5th Jun, 2025
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