Labor's Tax Changes Lead to Minimal Uptick in New Homeowners Amid Low Clearance Rates
Recent tax reforms by the Australian Labor government have resulted in a minimal increase in new homeowners, despite claims of aiding 75,000 new homeowners over the next decade. The national auction clearance rate has dropped significantly, with Sydney and Melbourne experiencing low clearance rates of 40.4% and 53% respectively. The reforms, which include restrictions on negative gearing and changes to capital gains tax, have contributed to a downturn in the property market. House prices in Sydney and Melbourne have fallen, while Brisbane and Perth have seen modest growth. The number of auctions has decreased by one-third from their 2025 peak. 
