Economist Rejects Claims Labor’s Tax Reforms Will Drive Up Rents

Independent economist Saul Eslake argued that the tax reforms would reduce demand for rental housing, helping to offset other impacts on the housing market.

Australian Prime Minister Anthony Albanese and Treasurer Jim Chalmers arrive at Parliament House in Canberra, Australia on May 13, 2026. Hilary Wardhaugh/Getty Images

Independent economist Saul Eslake has told a Senate committee that warnings that Labor’s proposed changes to negative gearing and capital gains tax will trigger rent increases are not supported by evidence.

Appearing before a parliamentary inquiry into the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, Eslake argued that the debate has focused too heavily on the number of rental properties investors might sell, while overlooking what could happen to rental demand.