Australia's government is considering limiting negative gearing to two properties and reviewing capital gains tax to boost revenue and affordability.

The Albanese government is considering limiting negative gearing to two investment properties and reviewing the capital gains tax discount ahead of the May budget, aiming to boost revenue and improve housing affordability. Treasury is modeling the impact, with potential changes expected to generate billions in revenue and address intergenerational equity, though no decisions have been made. While Treasurer Jim Chalmers says all options are under review, the government emphasizes fiscal responsibility and fairness. The opposition opposes the move, warning it could reduce housing supply and raise rents, while the Greens support reform. No final policy changes have been confirmed.