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SMH.com.au·3 min read·medium

Housing showdown: Chalmers on budget defence as Liberals warn of market crash

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Nick Newling, Matt Wade, Emily Kaine
Housing showdown: Chalmers on budget defence as Liberals warn of market crash
AI Summary

Australian Treasurer Jim Chalmers is defending government tax reforms amid a downturn in the housing market, arguing that price drops are temporary and influenced by multiple economic factors. The opposition has criticized the government, claiming these policies are exacerbating housing affordability issues.

Why it matters

The debate reflects the tension between government fiscal policy and the volatile housing market, which is a central concern for Australian voters and the national economy.

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Share A A A Treasurer Jim Chalmers has defended the government’s changes to negative gearing and the capital gains tax discount after admitting the budget overhaul is contributing to the fall in housing prices, insisting the downturn is temporary and will resolve over time.

After Chalmers fronted a tense press conference in Canberra on Wednesday, Shadow Treasurer Tim Wilson once again accused the government of stoking inflation to raise taxes as the big banks and the Reserve Bank prepare to face a parliamentary inquiry into intergenerational housing inequity.

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