Prime Minister Anthony Albanese has defended the government’s housing reforms after auction clearance rates fell below 50% in most major capital cities, telling the ABC's 7.30 program he does not want to live in a society "defined by intergenerational inequity."
Appearing on Monday evening, Albanese argued that the post-budget softening was not a sign of failure but of fairness. "When people went to buy their own home… they weren’t competing against investors who knew that if they could bid an extra $20,000 or $50,000, then taxpayers would essentially be subsidising that by increased deductions," he said, referencing changes to capital gains tax deductions.
Treasurer Jim Chalmers also faced questions over forecasts that house prices in Sydney and Melbourne could fall more than $100,000. Chalmers defended the projections, noting that softness in those markets predated the budget announcements, while clearance rates in Brisbane and Adelaide actually rose over the weekend.
Albanese pointed to a 400% increase in house prices since 1999—more than double wage growth—as evidence that the market was "broken" and required intervention. He warned that failing to act would mean homeownership rates for younger Australians would continue to drop.
Critics, however, argue that the reforms may be creating new distortions. The Guardian reports that at least one Liberal figure has called for a party "rebrand" amid the debate, suggesting the opposition sees an opportunity to frame Labor's changes as a policy misstep that could exacerbate housing affordability issues rather than solve them.