Albanese’s $4.3m home purchase could increase pressure to change property tax laws, Labor MPs suggest

Prime minister says he is focused on solving the housing crisis but the opposition has accused him of being out of touch with voters
Get our breaking news email, free app or daily news podcastKaren Middleton Political editorWed 16 Oct 2024 05.06 EDTLast modified on Wed 16 Oct 2024 05.07 EDTShareAnthony Albanese may face renewed backbench pressure to ease capital gains tax concessions, as Labor MPs privately express dismay at his decision to buy a $4.3m waterfront home on the New South Wales Central Coast before an election in the middle of a housing crisis.
Some Labor MPs have suggested the feared political backlash over the prime minister’s house purchase may force the government to look again at removing some of the generous concessions to residential property investors.
Why couldn’t the PM just enjoy Kirribilli’s harbour views for another six months and then go property shopping? | Sarah MartinRead more“How do you convince [voters] we’re not on the side of people with lots of homes when the boss is buying a very expensive one?” one MP asked. “Capital gains is where I would start.”
The Coalition accused Albanese on Wednesday of being tone deaf and out of touch with ordinary Australians as ministers scrambled to defend the prime minister’s purchase of the clifftop home in the coastal hub of Copacabana.
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The deputy Liberal leader, Sussan Ley, seized on the sentiments emerging from Labor ranks, saying she had “been saying he’s out of touch for a long time”.
“I’m not surprised that the prime minister’s Labor colleagues are starting to suggest that he’s out of touch … with ordinary Australians, who, as I said, are really struggling and really worried in the lead-up to Christmas,” Ley told Sky News.
She sought to link the purchase by Albanese and fiancee Jodie Haydon to retirement plans.
“Obviously, like all Australians, I wish the prime minister and Jodie well, they’re planning for the next phase of their life,” she said.
The Nationals leader, David Littleproud, said he does not begrudge the prime minister buying a home.
“I couldn’t afford a $4.35m home but good luck to him,” Littleproud told Sky News.
But Littleproud said the timing was “a little tone deaf”.
“This is obviously a retirement home for Anthony Albanese and I hope that by popular demand of the next six months, he gets to use it,” he said. “And I think Australians are turning off to Anthony Albanese. He’s not focused on their cost-of-living crisis. He’s focused on himself.”
Albanese insisted he was focused on Australians and their housing needs.
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2:14Greens MP warns ‘political class’ is set for reckoning with ‘screwed over’ renters – video“I’m focused on three things,” he told journalists. “One is making sure that more Australians can buy their own home. Second is helping renters through our build-to-rent scheme, and the third is our housing Australia future fund, and making sure that there’s more public and social and community housing.”
The treasurer, Jim Chalmers, also insisted Albanese was focused on housing and easing the financial pressure on Australians.
“I’ve seen for myself, his total focus is on how we roll out this cost‑of‑living help,” Chalmers told 2BA radio in Ballarat. “How do we build more houses for people to rent and buy? How do we take some of this pressure off people where we can?”
The prime minister bought a fancy house! Is it poor political judgment? | First Dog on the MoonRead moreThe climate change and energy minister, Chris Bowen, said Albanese had not discussed the purchase with his cabinet colleagues “and nor should he have”. Bowen said he was entitled to build “a property portfolio”.
“Every Australian is entitled to buy and sell property,” Bowen told Radio National. “Now, Anthony cops it when he sells a property. He cops it when he provides a rent holiday to his tenants. He cops it when he buys a property. I think most average Australians say, ‘Fair enough. This is what aspiration is about.’ Most average Australians say, ‘Well, we all buy and sell properties.’ We should be judged on our policies.”
Retiring Queensland state government minister and former federal Labor MP Yvette D’Ath also defended the decision – and politicians in general.
“We’ve got to actually have some respect for members of parliament and acknowledge that they’re allowed to live their life,” D’Ath told ABC Radio National. “They’re allowed to use their own earnings to purchase homes, and yes, people are struggling. I’ve got tenants all over my community, but the house I buy, whether I buy it or not, is not going to change that. What’s going to change is the government’s policy.”