Negative gearing changes expected within hours; Up to $300 back at tax time for most workers; Treasurer to flag savings

Momentum has been building for the government to tackle the generous double tax benefits of negative gearing and the CGT rebate, after a Senate Greens inquiry in March supported what some critics have said: the two concessions are flawed and benefit investors over first home buyers.

And while the government has not confirmed that these changes will happen in the budget, it has not ruled them out either, despite being given ample opportunity to do so.

Supporters of the policy, such as the Housing Industry Association, believe the changes could worsen the rental crisis by discouraging real estate investment during a housing crisis.

However, the government formulates its fiscal policy in social terms, arguing that the changes are necessary to tackle intergenerational inequality.

“We have serious challenges in the housing market in terms of how difficult it is for people, especially young people, to gain a foothold in the market,” Chalmers said on Sunday.