Sep 3, 2026 – 10.51amA sharp downturn in housing market sentiment caused by the Albanese government’s tax changes has forced economists to downgrade forecasts and shave a permanent 5 per cent off house prices, even as Jim Chalmers insists Treasury modelling puts the impact of Labor’s budget measures at just a 2 per cent reduction in growth.The treasurer admitted on Thursday the government’s changes to capital gains tax and negative gearing announced in the federal budget were “one of a number of reasons” behind the intensifying house price falls across the country.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Tax changes to permanently alter house price levels
Worsening sentiment is combining with longer-term policy changes to deepen the decline, as treasurer Jim Chalmers acknowledges the tax change’s role in the property downturn.
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