Updated ,first published
Former Labor leader Bill Shorten has claimed some credit for the Albanese government’s expected changes to negative gearing and capital gains tax breaks, while conceding he was “just a bit early” in taking similar policies to two elections.
He said voters were fed up with incremental solutions and were ready to reward politicians who took risks.
Shorten went to the 2016 and 2019 elections pledging to limit negative gearing to new properties and cut the capital gains tax discount when a person sells an asset such as a house to 25 per cent, down from the current rate of 50 per cent.
“I knew in 2019 that managerial politics no longer served the nation or the voters,” the former Labor leader told this masthead. “Maybe that wasn’t quite true then, but I knew that the demise of managerial politics was the future.
“The other thing where I was ahead of my time was that I believed that standing for something gets reward.”
In the lead-up to next Tuesday’s budget, this masthead and other outlets have reported the capital gains tax discount will be returned to the system introduced by Paul Keating in 1989, which offers a less generous tax discount, and restrictions on the number of properties a person can negatively gear.
The government has not contradicted these reports, but has held back from releasing the details of the policies.
Prime Minister Anthony Albanese repeatedly promised during the 2022 and 2025 elections that he would not make changes to CGT or negative gearing, but has now had an apparent change of heart.
On April 9, 2025, the prime minister was asked during the election campaign: “Can you rule out any changes to negative gearing and capital gains tax?”
Albanese’s response was: “Yes. How hard is it? For the 50th time.”
Speaking on the eve of the 20th anniversary of the Beaconsfield mine rescue in Tasmania – an event that effectively launched Shorten’s political career because he was head of the Australian Workers’ Union – the former opposition leader said he was pleased that Labor had taken up the policies he had campaigning for.
“I accept that it is obviously easier to do this from government than from opposition, but I have no regrets,” he said.
Soon after taking over from Shorten in 2019, following the election loss to Scott Morrison, Albanese dumped changes to negative gearing and capital gains tax as party policy.
Some in the federal caucus opposed the move, but Albanese was determined for Labor to be a small target and keep the focus on Morrison and the Coalition.
Now working as University of Canberra vice-chancellor, Shorten said the forces that had opposed negative gearing and CGT in 2016 and 2019 were “not as prevalent now”.
“Baby Boomers and the older generations in 2019 made up greater than 50 per cent of the electorate. Now they would be a minority, probably in the high 20 per cent range,” he said.
“Now the majority of people, from people in their early 50s to those turning 18, embrace the need for real action on housing and tax reform. There is a disproportionate number of Gen X who are renters.”
Asked about Albanese’s broken promise on Friday morning, Treasurer Jim Chalmers – who played a key role under Shorten in advocating for the policy shift – said he would not pre-empt what announcements would be made on tax policy in Tuesday’s budget.
But he added: “I think the principle here is, when governments come to a different view, they have to front up and explain why that is the case.”
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James Massola is chief political commentator. He was previously national affairs editor and South-East Asia correspondent. He has won Quill and Kennedy awards and been a Walkley finalist. Connect securely on Signal @jamesmassola.01Connect via X or email.