MEDIA RELEASE
6 May 2026
Albanese Government’s Housing Tax Backflip Will Hurt Townsville Families
Federal Member for Herbert Phillip Thompson OAM MP has called Prime Minister Albanese a liar and condemned the Prime Minister and the Albanese Government for walking away from its commitment and promise to not introduce new housing taxes, warning the move will make life harder for Townsville families, renters and small businesses.
Mr Thompson said Anthony Albanese has been caught out in a lie. Labor went to the election promising no new housing taxes, including no changes to negative gearing or the capital gains tax discount only to now signal the exact opposite.
“Before the election, Australians were clearly told there would be no new housing taxes. Now, on the eve of the Budget, families are being told to expect higher taxes on their homes, their savings and their investments,” Mr Thompson said.
“This is a lie told by the Prime Minister, and everyday Australians will pay the price.”
Mr Thompson said Prime Minister Albanese had already proposed more than $387 billion in higher taxes, impacting income tax, housing, superannuation, savings and small and family businesses.
“Labor has never met a tax it didn’t like and now housing and family savings are in the Government’s sights,” he said.
Mr Thompson said yesterdays decision by the Reserve Bank to increase interest rates again taking the cash rate to 4.35 per cent was another blow for local homeowners already under pressure.
“This is the third rate hike this year, and it’s Townsville families who are paying the price,” he said.
“For a typical mortgage, today’s rise alone could add around $90 a month in repayments, and more than $270 a month when combined with earlier increases this year.”
Mr Thompson said the impact would be deeply felt in Townsville, where many households are already dealing with rising rents, tight housing supply and cost‑of‑living pressures.
“In Townsville, we know families are already doing it tough with vacancy rates below 1 per cent and rents rising sharply this increase will only make it harder for homeowners to keep up with repayments and stay ahead,” he said.
Independent market experts have warned that abolishing negative gearing and winding back the capital gains tax discount could push median rents up by as much as 20 per cent, hitting renters hardest at a time when housing affordability is already under strain.
“If you tax something more, you get less of it,” Mr Thompson said.
“Higher taxes mean less investment, fewer homes, fewer jobs and slower economic growth.”
“We should be encouraging more housing supply, not policies that drive investors away and push rents even higher.”
Mr Thompson said the proposed changes would also hurt small and family businesses that rely on investment certainty to expand, employ locals and keep regional communities strong.
“With fuel security challenges, rising energy costs and inflation still biting, the last thing Australia needs is more taxes that choke off investment and confidence,” he said.
He also pointed to income‑tax bracket creep, which is now costing average taxpayers around $2,000 a year, further adding to household pressure.
“The Prime Minister explicitly said there were no plans to touch negative gearing or the capital gains tax discount,” Mr Thompson said.
“Now Australians are being told this is about ‘building trust’ by doing the opposite of what was promised.”
Mr Thompson said Australians deserved honesty and certainty, not broken promises and last‑minute tax grabs announced in the Budget.
“Townsville families deserve policies that help them get ahead not higher taxes and rising interest rates that push home ownership further out of reach.”
ENDS