Greens’ CGT Plan Targets Property Portfolios, Impacting Investors with Multiple Holdings

Federal Election 2025: Greens Target Brisbane Seats, Propose Changes to Capital Gains Tax

As the 2025 federal election campaign progresses, the Australian property market is facing increased scrutiny, particularly concerning proposed changes to capital gains tax (CGT) and the potential impact of a shift in political power. Greens leader Adam Bandt has outlined a plan to target property investors with multiple holdings, while simultaneously focusing on retaining the party’s grip on key Brisbane seats. A potential minority government could significantly alter the landscape for property professionals and investors alike.

Greensland: Brisbane Seats Crucial to Power Balance

The Greens’ success in the previous election, securing the Brisbane seats of Ryan, Brisbane, and Griffith, reshaped the political landscape. Mr. Bandt has openly stated that retaining these seats is vital to preventing a Coalition government led by Peter Dutton. “If we keep Brisbane Green, we keep Dutton out,” Bandt stated on 7.30, highlighting the strategic importance of these urban electorates.

This focus on Brisbane has implications for the property market, particularly in those inner-city areas. Real estate agents and developers operating in these electorates will be closely watching the election results, as a continued Greens presence could lead to increased pressure for policies favouring renters and first-home buyers over investors.

Capital Gains Tax Reform: Targeting Multiple Property Owners

A key policy plank outlined by Mr. Bandt is a proposed reform to capital gains tax. Speaking on 7.30, Mr. Bandt specified that the proposed changes would primarily target individuals holding multiple investment properties. “Our approach is to say for people who have in addition to their own home one investment property, they can keep the current arrangements,” he said. “But we’re talking about people who have 5, 10, 15, 20 properties.”

This policy could have a significant impact on the investment strategies of individuals with extensive property portfolios. The potential consequences on the market include:

• Increased Sales: Investors with numerous properties may consider selling some assets to reduce their CGT exposure if the Greens’ policy is implemented. This influx of properties onto the market could place downward pressure on prices, particularly in investor-heavy areas.
• Shift in Investment Focus: There could be a shift away from residential property towards other asset classes, such as commercial property or shares, which may not be subject to the same CGT regulations.
• Impact on Rental Market: A reduction in the number of investment properties could lead to a tightening of the rental market, potentially driving up rents. This contradicts the Greens’ stated aim of improving housing affordability.

It’s essential for property professionals to understand the potential ramifications of this CGT reform to advise their clients effectively. Tax advisors and financial planners will need to model different scenarios to determine the optimal investment strategies for their clients based on the election outcome.

Minority Government: A Potential Catalyst for Change?

Mr. Bandt has also alluded to the possibility of a minority government, drawing parallels with the 2010 Gillard government. He suggested that the Greens could leverage their influence in such a parliament to push for policies such as increased investment in childcare, ending native forest logging, Medicare coverage for dental care, and reforms to “unfair tax handouts” for property investors.

The prospect of a minority government introduces a level of uncertainty into the property market. Any party seeking to form government would likely need to negotiate with the Greens, giving them considerable leverage to implement their policies. This could lead to significant shifts in government priorities and funding allocations, indirectly impacting property values and development projects.

Some analysts argue that such policies, while aimed at addressing social inequality, could inadvertently harm the property market by discouraging investment and reducing housing supply. Concerns have been raised about the effect of tighter tax regulations on mum-and-dad investors, potentially impacting their retirement plans and financial security.

Conversely, proponents of the Greens’ policies argue that they are necessary to address the housing affordability crisis and create a more sustainable and equitable property market. They believe that curbing excessive investment in residential property will free up housing for owner-occupiers and improve rental affordability.

Divergent Views on Housing Policies

The Greens have been critical of the housing policies proposed by both major parties. Mr. Bandt endorsed comments labeling the major parties’ policies a “dumpster fire of bad ideas,” suggesting a fundamental disagreement on the best approach to address housing affordability. Specifically, Greens senator Sarah Hanson-Young claimed she was disappointed by Labor’s propositions and worried about the Liberal’s policies, asserting they might worsen the situation and saddle young people with high debt.

This disagreement underscores the different philosophical approaches to housing policy. The major parties typically focus on measures to stimulate demand, such as first-home buyer grants and stamp duty concessions, while the Greens advocate for policies to kerb investor activity and increase housing supply through public housing and other initiatives.

The election outcome will determine which approach prevails and will shape the future direction of housing policy in Australia.

Source: https://www.abc.net.au/news/2025-04-15/federal-election-2025-live-updates-albanese-dutton-campaign/105175764

This article is based on a report from www.abc.net.au titled “Federal Election 2025: Bandt says a Green Brisbane is the key to keeping ‘Dutton out’ — as it happened”. You can find the original article here: https://www.abc.net.au/news/2025-04-15/federal-election-2025-live-updates-albanese-dutton-campaign/105175764