Labor’s property taxes are worth the pain

May 15, 2026 — 5:00am

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Don’t listen too intently to the racket around Labor’s latest tax changes: it’s about time the government did something that ruffled some feathers.

The changes don’t look good for me, but I’m a pretty happy camper. Why? Because they’re exactly what we need – and what I’ve been asking for.

A few years ago, shortly after moving out of home to live in one of the most expensive capital cities in the world – and realising exactly how unaffordable housing was – I started writing about what we need to do to fix our property market. Chief among the changes I’ve pushed for has been the winding back of the tax concessions we give to property investors.

As one of the lucky ones to have bought my own home, the tax changes Labor has brought in aren’t very useful for me. In fact, they probably put me in a worse position going forward if I’m looking at it from a purely personal perspective.

Although the primary residence – the home you own and live in most of the time – is still exempt from the capital gains tax, if Labor’s changes work as they should, growth in the value of homes should slow. That’s because the tax changes aim to push investment into new homes, increasing the supply of properties in Australia which should reduce price growth.

For people hoping the value of their properties rise – making them wealthier – that’s not good news.

But for those who are struggling to find a way into home ownership, slower price growth is exactly what’s needed.

It’s not just a fight between the “haves” and the “have-nots”, either. We always knew investors would be irked at having to pay more tax.

There are also supporters of a less heated housing market, though, who think the government has worsened the situation.

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They argue the tax changes do little to slow down the growth in house prices and that they make it harder for people who have been........

© The Sydney Morning Herald