<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/jim-chalmers" rel="" target="" title="Jim Chalmers"><span>Jim Chalmers</span></a><span> has effectively confirmed Treasury has looked into the impact of limiting one of </span><a href="https://www.9news.com.au/australia" rel="" target="" title="Australia's"><span>Australia's</span></a><span> most contentious tax breaks for property investors, as speculation continues to build about a significant overhaul of the </span><a href="https://www.9news.com.au/tax" rel="" target="" title="tax"><span>tax</span></a><span> system in this year's </span><a href="https://www.9news.com.au/federal-budget" rel="" target="" title="federal budget"><span>federal budget</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Speaking to reporters today, the treasurer was asked whether reports published this morning of his department conducting modelling about how much revenue could be raised by limiting negative gearing to two investment properties were accurate.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We haven't changed our tax policies," he replied.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>BUSINESS:</span></strong><span> </span><a href="https://www.9news.com.au/national/hills-hoist-maker-strategic-review-expected-sale/6e7db2de-2fd6-4bd2-98c7-b28acfa14269"><strong><span>Company behind Australian cultural icon on verge of being sold</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Our tax policies are all about delivering another income tax cut in July this year and another one in July next year…</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's not unusual this far out from the budget that the Treasury would be considering other options and other next steps.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"But, as always, any further steps along those lines would be a matter for cabinet."</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/negative-gearing-treasury-modelling-jim-chalmers-federal-budget/38dc9045-0406-4198-b3db-7b5a67706ebb" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The language is notably similar to that used by Chalmers and Prime Minister Anthony Albanese before the federal government embarked on a promise-breaking but ultimately popular decision in 2024 to </span><a href="https://www.9news.com.au/finance/stage-3-tax-cuts-extra-income-per-week-month-explained/dc2e4147-fb4a-4293-84ee-e93225e14c30" rel="" target="" title="revise the stage 3 tax cuts to redirect more of the benefit to lower-income earners"><span>revise the stage 3 tax cuts to redirect more of the benefit to lower-income earners</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Negative gearing allows property investors to write off the costs associated with their loss-making rentals as a tax deduction.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>FROM THE ARCHIVES:</span></strong><span> </span><a href="https://www.9news.com.au/finance/what-is-negative-gearing-capital-gains-tax-investment-property-tax-concessions-australia-explained/79a83105-f4c6-4121-a693-6df0692adba8" target="" title="What is negative gearing and why are calls to change it so controversial?"><strong><span>What is negative gearing and why are calls to change it so controversial?</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Alongside the capital gains tax (CGT) discount – </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-australia-speculation-overhaul-federal-budget-2026/1fcd9f5b-370a-4045-a4c3-c00c4dbec466" rel="" target="" title="which the government also hasn't ruled out taking a razor blade to in the May 12 federal budget"><span>which the government also hasn't ruled out taking a razor blade to in the May 12 federal budget</span></a><span> – the two policies have become a lightning rod amid a growing debate around the generous incentives offered to property investors while young Australians find it increasingly difficult to buy their first homes.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A host of economists, politicians and unions have argued for removing or reducing the tax breaks, saying such a move would make property more affordable and could fund much-needed income tax cuts.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, others have argued that would do little to address the housing crisis, and instead lead to less supply in the sector.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>According to the Property Council, almost 1.3 million Australians use negative gearing. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A previous analysis of ATO statistics estimated just under 30 per cent of those negatively geared taxpayers had two or more investment properties.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-australia-speculation-overhaul-federal-budget-2026/1fcd9f5b-370a-4045-a4c3-c00c4dbec466" rel="" target="" title="Government not ruling out capital gains discount reform"><strong><span>Government not ruling out capital gains discount reform</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Figures from the Parliamentary Budget office have shown negative gearing costs the federal government almost $7 billion a year, and the CGT discount for residential properties $5.4 billion, at the same time the budget has fallen into a structural deficit.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Last year's papers forecast the </span><a href="https://www.9news.com.au/national/federal-budget-2025-breaking-down-the-budget-by-graphs/c51b7382-4338-4a18-b2f0-693f245c26d8"><span>national accounts would be a combined $180 billion in the red between 2025 and 2029</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While Albanese has previously ruled out making changes to negative gearing – the proposal has widely been blamed on Labor's shock 2019 federal election losses – Chalmers has frequently spoken about wanting to address the inequality facing young Australians.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That was a point he reiterated today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We are alive, obviously, to the intergenerational issues in the housing market and in the tax system," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal opposition has signalled it would fight any effort to roll back the CGT discount or negative gearing, although the government would likely be able to get any proposal through parliament with the support of the Greens.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google 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