Tanya Plibersek refuses to rule out negative gearing changes as Barnaby Joyce warns of budget backflip

The Albanese government is facing renewed pressure over a potential budget backflip on negative gearing after senior minister Tanya Plibersek stopped short of ruling out changes just days before the federal budget is delivered.

Appearing on Sunrise, Ms Plibersek repeatedly declined to confirm whether the government would alter negative gearing, saying she would not “speculate about what’s in or out” ahead of next week’s budget.

“Well, look, I’m not going to talk about anything that may or may not be in the budget,” she said.

“It’s in a week’s time.”

Pressed on whether any changes would amount to a broken promise, Ms Plibersek again avoided a direct answer, instead pointing to the government’s broader focus on housing affordability and “intergenerational fairness”.

“What I will tell you for certain is that we are going to have a budget that has fairness at its centre,” she said.

The exchange is likely to intensify speculation that the government could be considering reforms to investor tax settings, including negative gearing or capital gains tax, as part of efforts to address Australia’s housing pressures.

Nationals MP Barnaby Joyce seized on the comments, arguing the refusal to rule out changes suggested a shift may be under consideration.

“After that mad, evasive answer, we got the greatest endorsement that they’re going to bring in changes to negative gearing,” he said.

He also warned of broader tax implications, claiming potential changes could affect property transfers and family assets.

“There will be changes to capital gains tax … you’ve basically got quasi death duties,” Mr Joyce said.

Mr Joyce argued that altering negative gearing would penalise investors and fail to address the core issue of housing supply.

“People who are prudent … invest in capital assets so their children can have a better life,” he said.

Ms Plibersek rejected suggestions that the government was targeting investors, instead emphasising the need to boost housing supply and improve access for first-home buyers.

“Housing supply is absolutely the key,” she said, pointing to government initiatives aimed at increasing construction and supporting buyers into the market.

The government has previously ruled out introducing death duties, with Ms Plibersek reiterating that position during the interview, even as she declined to offer similar certainty on negative gearing.

The debate comes as housing affordability remains a dominant political issue, with pressure mounting on the government to outline how it will balance support for first-home buyers with investor settings.

With the budget just days away, attention is likely to remain on whether any changes to key tax policies are on the table — and what that could mean for voters and the housing market.