Treasury Predicts Labor’s Tax Overhaul to Raise Rents by Less Than $2 a Week

Treasury says Labor’s policies will create more housing supply that will put downward pressure on rent.

Australian Treasurer Jim Chalmers takes questions from the media at Parliament House in Canberra, Australia on May 13, 2026. Hilary Wardhaugh/Getty Images

The federal government predicts its overhaul of negative gearing and capital gains tax will result in a tiny increase in rent, and spur new home building in some areas while conceding it will slow building in others.

On May 12, Labor Treasurer Jim Chalmers unveiled the sweeping changes to wealth generation avenues for Australians with a particular focus on the housing market.