Anthony Albanese’s government is seriously considering a bold change to negative gearing that will send shivers down the spines of millions of Australian homeowners

Anthony Albanese’s government is seriously considering changes to negative gearing and capital gains tax exemptions.

Nine newspapers confirmed the government has asked for modelling for the possible move to negative gearing, an unnamed Labor source said.

Another Labor source confirmed that negative gearing changes were being considered, but Labor could still decide not to make any policy changes.

Australia’s negative gearing policy allows property investors to claim tax relief when the costs of owning and maintaining their investment properties, such as loan interest and maintenance costs, exceed the rental income they earn from them.

This tax benefit can reduce the investor’s taxable income, potentially leading to a lower tax bill.

Labor leader Bill Shorten’s plan to ditch negative gearing contributed to his loss of the “unlosable election” to Scott Morrison in 2019.

When Mr Albanese took over as Labor leader after that loss, he said changes to negative gearing were off the table.

But now it could be back on Labor’s agenda for the federal election due to be held in May next year.

In interviews last week, Mr Albanese was repeatedly asked whether Labor would consider changes to negative gearing, but at no point did he rule it out.

“I don’t answer those kinds of questions,” he said on ABC Radio National last Thursday.

But two days earlier he referred to a claim by the Property Council of Australia that changing negative gearing would harm housing supply.

Anthony Albanese’s (pictured) government is seriously considering a bold economic plan he previously rejected that will send shivers down the spines of Australian homeowners

When Mr Albanese took over as Labor leader after that loss, he said changes to negative gearing were off the table.

“That’s one of the reasons we’re being very cautious about this,” he told ABC Radio Sydney.

Being ‘cautious’ doesn’t mean ruling anything out, though. One Labor official said: ‘This is what Labor needs and wants: they need to fight for policies that show what they stand for.’

“It’s in the value framework. That’s why Albo was reluctant to rule it out the other day. Look at what Albo said, he didn’t knock it on the head.

“This will give the government something big and positive to talk about. It will be a major talking point in the campaign.”