Joint Statement - Economic modelling confirms Labor’s tax plan will punish housing and the economy

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The Hon Tim Wilson MP

Federal Liberal Member for Goldstein
Shadow Treasurer

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SENATOR ANDREW BRAGG

Shadow Minister for Housing and Homelessness

Shadow Minister for the Environment

Liberal Senator for New South Wales‍

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Joint Statement

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Economic modelling confirms Labor’s tax plan will punish housing and the economy

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29 May 2026

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Labor’s tax plan will deliver fewer homes, higher rents, smash the economy, and slash jobs.

New economic modelling confirms Labor’s deliberate design feature of the 2026-27 Budget is to suppress housing supply in a housing crisis.

Industry modelling confirms that housing supply will suffer a net decrease, even after accounting for the housing infrastructure spend in the Budget. Further, rents will go up by more than expected. GDP will also fall, and thousands of jobs will be cut from the construction sector.

Treasury says that the main point of the Budget was an $80 billion tax grab, as “revenue needs to be raised from somewhere”, and that the point of the changes was not housing supply. This contradicts the Treasurer’s statement yesterday that changes to CGT and negative gearing will “support investment in new housing supply.”

Labor needs to come clean on how their tax hikes will lift housing supply. We have zero detail behind the assumptions in the Budget.

It is a deeply unserious Budget. Things are so bad the Government admits its tax law must be amended before the Senate has even considered the legislation.

The Budget also reveals that Labor have abjectly failed on housing supply. They will fail to meet the 1.2 million housing target, and this is why they have slashed funding for the New Homes Bonus. Their Housing Australia Future Fund, which is meant to fix the housing crisis, built zero homes in 2025-26 and its housing targets are  now “at risk”.

We lack a credible policy response from Labor to address Australia’s housing supply crisis.

Australia needs more homes, lower taxes, and no gimmicks. This is why the Coalition will:

● Get stalled housing projects moving again by investing in supporting infrastructure,

● Cut red tape by paring back the NCC, to reduce the costs of building a new home, and

● Link migration numbers to the number of homes constructed each year, to ensure the people coming to Australia can be supported by the available housing, infrastructure and other services.

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We need to build our way out of the housing crisis. We are determined to ensure that all Australians can experience the dream of owning their own home.

[Ends]

Media Contacts

Shadow Treasurer: Francis Bolster - 0407 487 280

Senator Bragg: 0401 392 624

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