Why Jim Chalmers’ new go-to negative gearing phrase will send chills down the spines of some Aussies: ‘Watch out’

Treasurer Jim Chalmers has been outed by the opposition after using one simple sentence to reassure the public that Labor is not going out on a negative note: ‘We have not changed our views’.

Dr. Chalmers was asked on Monday about possible future changes to the negative gearing policy – where Australians get tax breaks on investment properties when their expenses exceed the income they generate.

The Treasurer was confident that no such policy change was in the offing, but echoed the same words used by Prime Minister Anthony Albanese when he said he would not break his promise on the third phase tax cuts.

“We are not considering or considering reviving the policies we put in place in the 2019 elections,” he said.

‘We have not changed our mind.’

That last sentence was Prime Minister Anthony Albanese’s starting point before he announced he would effectively change phase three cuts last week.

“We have not changed our position,” Albanese told voters, journalists and colleagues.

During the Prime Minister’s National Press Club speech on Thursday, he indicated that this sentence was specifically worded to conceal the government’s plans.

Albanese told reporters on Monday that the government’s “position had not changed.”

He later said it was technically true as “we changed our position in Cabinet on Tuesday.”

Deputy Opposition Leader Sussan Ley told Daily Mail Australia there is a “clear pattern in the language” used by senior Labor figures.

“Sneaky Jim Chalmers – ‘we haven’t changed our position’ means beware,” she said.

‘The problem with having a liar in the Lodge is that you can’t trust anything anyone says in this devious Labor government.

“Australians learn the hard way that when Labor runs out of money, they come after your money.”

During the press conference, the treasurer was confronted about the similarities and asked ‘why should people believe you this time?’

Dr. Chalmers said: ‘Because when we came to a different view on the third phase of income tax cuts, we were honest about why.

“We have made it very clear that this is not something that we have considered or are considering, and again I think the Australian people expect us to do the right thing. This isn’t about the political stuff.’

Asked to reiterate his position, Dr Chalmers said: ‘We have not changed our view on that. We have found other ways to support the housing market.

“We’ve changed our view on the third tax cut, so here’s why.”

It is understood that some Labor MPs are campaigning internally to push Labor to review its negative gearing policy.

Negative gearing occurs when the cost of owning a rental property exceeds the income it generates, creating a taxable loss that can be offset against other income.

For example, if someone rents out an investment property for $20,000 a year, but he pays $30,000 in interest on his mortgage, he can essentially deduct $10,000 from his paycheck and only pay taxes on what’s left.

Negative gearing benefits investors who want to expand their real estate portfolio, rather than starters.

One Labor MP said there is broad support within the party for introducing negative gearing law changes because members are concerned it unfairly benefits older generations.

“It shouldn’t be easier to buy your second and third homes than your first,” the anonymous MP said The Australian.

However, another MP warned that this could only happen after the next election so that Labor would have a mandate for it.

“One broken promise is enough for one term,” the MP told the newspaper.

Anthony Albanese promised at least 36 times during the election that he would make no changes to the statutory cuts introduced by the Morrison government.

But last week, Labor MPs gave their unanimous support to a decision to halve the benefit for Australians earning more than $180,000, in favor of a boost for lower earners.

The major decline has led to heavy criticism, with Labour’s reliability being questioned.

But Albanese has defended the decision, claiming his changes will provide more help to ‘middle’ Australia, while still providing a tax cut for ‘all Australians’.

Meanwhile, Labor MPs and unions are calling for more direct support for living costs as the third phase of cuts does not start until July.

Electrical Trade Union national secretary Michael Wright said the ‘No.1 item’ to ease pressure on living costs was providing help with electricity costs.

This position was reportedly supported by Labor MP Brian Mitchell, who called for an extension of the government’s energy bill package.

Mike Freelander, the Labor MP for Sydney’s south-west seat of Macarthur, said Australian people in his electorate were struggling with transport and medical bills.

“Pressures on medical costs are also very high as we approach the 40th anniversary of Medicare and more needs to be done to improve people’s access to primary care,” Mr Freelander said.

‘In suburban areas like mine, travel costs are a big factor, and I would really like to see something done there.

“It’s a killer, it really costs thousands of dollars a year.”