Coalition Vows to Repeal Negative Gearing Reform If Elected

Opposition Leader Angus Taylor has pledged to scrap Labor's tax reforms and link immigration to housing completions — what does it mean for buyers?

Opposition Leader Angus Taylor delivered his budget reply to Parliament on Thursday evening 14 May, laying out a set of housing proposals that, if enacted, would substantially reverse the Albanese government's 2026–27 budget changes.

Taylor labelled the current budget "intergenerational fraud", directing much of his argument at the reforms to negative gearing and the capital gains tax (CGT) discount that Labor announced on budget night. He committed that a Coalition government he leads would repeal both changes if elected.

The Adviser reported on the speech as delivered in Parliament.

In Taylor's framing, Labor's tax reforms would "reduce the number of houses available for young Australians to buy or to rent," "hand over housing investment to multinationals and foreign pension funds," and "discourage the investment Australia needs to grow." He described the changes as "an assault on aspiration" and an "attack on the wealth creation that benefits us all."

The Coalition's Key Housing Proposals

**Tying immigration to housing completions**

The most structurally novel element of the Coalition platform is a proposed legal mechanism to cap net overseas migration based on the number of new dwellings completed each year. Under the proposal, the Minister for Housing would report to Parliament annually on new home completions; that figure would then set the ceiling for net overseas migration in the following year.

"Never again will a government be able to bring in more people than our housing can support," Taylor said in his speech.

He acknowledged that immigration numbers would need to run "significantly below the cap" in the early years of a Coalition government to allow the housing market to catch up — with exact figures to be confirmed closer to the next election, which is due by May 2028.

**Restricting the First Home Guarantee to citizens**

The Coalition would limit the government's 5 per cent deposit scheme to Australian citizens only. Taylor said the scheme has been used by approximately 50,000 non-Australians and would be restructured to prioritise citizens entering the market.

**A $5 billion Housing Infrastructure Fund**

Taylor announced a $5 billion Housing Infrastructure Fund aimed at unlocking up to 400,000 homes by funding what he described as "critical last mile infrastructure" — water, sewerage, power and access roads. For comparison, the federal government this year pledged $2 billion for a similar program.

**Cutting construction costs via the National Construction Code**

The Coalition said it would "slash the National Construction Code" while maintaining core safety standards, with a target of reducing the cost of building a new home by up to $70,000 per dwelling. Taylor also criticised government-led housing programs, claiming they have seen "30,000 fewer homes built each year."

**Scrapping build-to-rent concessions and the Housing Australia Future Fund**

Taylor committed to removing tax breaks for build-to-rent projects managed by foreign multinationals and winding back the Housing Australia Future Fund, labelling it "ineffective."

What This Actually Means for Borrowers

Here is the most important practical point for anyone reading this: these are opposition proposals, not law. The Albanese government's changes to negative gearing and the CGT discount are now in effect. The Coalition has vowed to repeal them if elected — but the next federal election is not due until May 2028. A policy promise and enacted legislation are very different things, and two years is a long time in politics.

For borrowers, the temptation is to treat a potential future reversal as a reason to delay buying, or to rush in before further changes occur. Neither is a particularly sound strategy. Housing markets respond to dozens of forces — interest rates, credit conditions, supply pipelines, local employment — and political promises have a mixed track record as near-term price predictors.

The more durable approach is to get your financing right now, regardless of which party holds the levers in two years' time.

**First home buyers** trying to understand what schemes are available under current rules should start with our [first home buyer hub](/home-loans/first-home-buyer), which covers the government's deposit scheme and state-level stamp duty concessions as they stand today.

**Investors** reassessing their strategy given the new tax environment can compare products suited to investment lending on our [investor home loan hub](/home-loans/investor). The after-tax cash flow on an investment property has changed — running the numbers with a broker who understands the new rules is the right first step.

**Existing homeowners** who haven't compared rates in a while should use our [refinance savings calculator](/calculators/refinance-savings) to see whether switching could improve their position. The rate on your current loan is one of the most immediate levers you can pull — policy changes aside.

The Coalition's proposals represent a genuine and substantial alternative vision for housing policy. The $5 billion infrastructure fund and the construction cost reduction target in particular address the supply side in a way that could, if implemented, have long-term impact on building activity. But these are plans for 2028 at the earliest — and plans change.

What doesn't change is the importance of a well-structured mortgage: a rate you can service comfortably, a loan structure suited to your circumstances, and a regular review cycle to ensure you're not paying more than you need to. That strategy holds whether Labor or the Coalition is writing the housing policy in two years' time.

[Source: The Adviser](https://www.theadviser.com.au/borrower/48439-coalition-vows-to-scrap-housing-tax-reforms-and-limit-migration-to-supply)