Before the last election, Anthony Albanese encouraged young Australians to buy homes with a five per cent deposit.
asserted
Albanese → encourage → deposit
Then, immediately afterwards, he changed the tax rules in ways that helped drive down the value of what they had just bought.
asserted
they → change → what
This deserves a place right near the top.
asserted
This → deserve → top
First-time homebuyers who scraped together their savings, borrowed almost the entire purchase price and trusted the government's claim that 'now is a good time to buy', have been left with negative equity in their newly purchased homes.
uncertain
time → scrap → homes
As interest rates keep rising and buyers flee the market for other asset classes, now that CGT and negative gearing rules have changed.
asserted
CGT → keep → classes
Even if Labor's broken promises on property taxes ultimately help keep house prices lower for future young Australians looking to buy a first home, the tens of thousands who utilised Labor's deposit scheme have been thoroughly screwed over by Albo's backflips.
asserted
who → break → backflips
'If you're looking to buy your first home, Labor's got your back,' the PM declared at his April 2025 campaign launch.
asserted
PM → look → launch
Before the election, he was explicitly asked whether he could rule out changes to negative gearing and capital gains tax settings if re-elected.
uncertain
he → ask → settings
First-time homebuyers who scraped together their savings, borrowed almost the entire purchase price and trusted the government's claim that 'now is a good time to buy', have been left with negative equity in their newly purchased homes.
uncertain
time → scrap → homes
(Anthony Albanese is pictured)
asserted
Albanese → picture → ?
Emphatic, impatient, seemingly offended that anyone would keep asking.
asserted
anyone → keep → ?
Soon after the election, Labor expanded its five per cent deposit scheme, removing income caps, uncapping places and lifting property price limits.
asserted
Labor → expand → limits
Albo said the changes 'will open the door to thousands more buyers, helping them save money and get their keys faster'.
asserted
them → say → keys
Just six months later, Labor's budget unveiled changes to negative gearing and capital gains tax that reduced the appeal of investing in established housing.
asserted
that → unveil → housing
First, they encouraged young Australians to borrow heavily to compete for homes.
asserted
they → encourage → homes
Then they changed the investment settings underpinning demand for those very same properties.
asserted
they → change → properties
The Reserve Bank's latest financial stability review makes the connection abundantly clear.
asserted
connection → make → ?
Tax changes and higher interest rates have contributed to declining housing prices.
asserted
changes → contribute → prices
Years of saving can disappear with a modest market correction.
asserted
Years → save → correction
Meanwhile, the mortgage still needs paying, while higher interest rates make that harder.
asserted
that → need → ?
Albo encouraged Australians to use the five per cent deposit scheme to buy properties, then changed the investment settings underpinning demand for those very same properties.
asserted
Albo → encourage → properties
(McMansions on the Gold Coast are pictured)
asserted
McMansions → picture → Coast
The government guarantee which enabled people with minimal deposits to get into the market right before it started to crash protects the banks lending the money, not the new homeowners.
asserted
it → enable → money
Meaning that taxpayers will foot the bill if foreclosures happen.
asserted
foreclosures → mean → bill
More affordable homes would benefit Australians still waiting to buy.
asserted
homes → benefit → Australians
Governments can't guarantee that property prices will rise forever.
asserted
prices → guarantee → ?
But none of that excuses encouraging people to enter with minimal equity, having emphatically ruled out tax changes, then reversing those assurances months after expanding the scheme.
asserted
none → excuse → scheme
If Labor believed its tax reforms were necessary, it should have explained its intentions before asking voters to endorse its housing package.
asserted
it → believe → package
Instead, voters got the attractive announcement before the election and the uncomfortable consequences after it.
asserted
voters → get → it
When Albo was asked whether his earlier assurances were promises, he offered this distinction: 'They were statements and we have changed our position.'
asserted
we → ask → position
A government can change its position, but a young couple with a newly settled mortgage can't hand back the keys and retrieve their deposit because the Prime Minister has found a new policy preference after votes have been cast.
asserted
votes → change → preference
Negative equity needn't force someone out of their home.
asserted
equity → force → home
Most borrowers are keeping up with their repayments, and buyers who can hold on may eventually recover their losses.
uncertain
who → keep → losses
But life doesn't always accommodate such a long-term investment horizon.
asserted
life → accommodate → horizon
Certainly not as the unemployment rate rises and fears of a recession abound.
asserted
fears → rise → recession
People lose jobs, relationships break down, rising interest rates squeeze family budgets.
asserted
rates → lose → budgets
People can be forced to relocate for work.
asserted
People → force → work
Selling a home worth less than the outstanding mortgage can leave people already doing it tough with debts even once the property is gone.
asserted
property → sell → debts
Albo's reckless disregard for keeping his word has enabled such a dire outcome for many who trusted what he promised.
asserted
he → keep → what
The PM understood the importance of protecting existing investors such as himself when setting the new property tax rules.
asserted
PM → understand → rules
…and 27 more, not listed.
The Aporia
