Australian news and politics live: Angus Taylor to launch Coalition fightback with tax and housing reform

Housing Minister Clare O’Neil was forced to defend negative gearing and capital gains tax concessions, rejecting claims the reforms would punish younger Australians looking to invest in property.

Speaking on ABC radio, Ms O’Neil said the Government was still supportive of property investment but wanted tax concessions to encourage the construction of new homes to help address the housing shortage.

“We’re not saying that no one should be a property investor,” she said.

“If you want to get ahead through investing in property, good on you. All we’re saying is if you’re going to get access to those generous tax concessions, we want you to help us with our national supply challenge by doing it on a new home.”

Opposition finance spokeswoman Claire Chandler has defended the Coalition’s proposal to restrict welfare payments to citizens, arguing the policy is about “principle” rather than budget savings ahead of Angus Taylor’s Budget reply speech on Thursday night.

“This isn’t about the savings … and this will all be costed in the usual way, but what it is about here is the principle – that if you want to come to our country and access our welfare system go right ahead but we would love you to be an Australian citizen in order for you to do that,” Senator Chandler told Sky News.

Asked whether the policy was aimed at countering Labor or responding to pressure from Pauline Hanson’s One Nation, Senator Chandler said, “I don’t think this is done with anything other than the benefit of our country in mind.”

Opposition Leader Angus Taylor will propose limiting welfare payments to non-Australian citizens as part of the Coalition’s economic and migration reset, arguing the change would save billions of dollars and prioritise support for Australians.

Ahead of tonight’s Budget reply speech, Mr Taylor said permanent residents should no longer be eligible for payments including JobSeeker and the NDIS.

“If you commit to this country we’ll commit to you and that’s how it should be,” he said.

“That’s the Australia I grew up in and it’s the Australia I want to see again.” Mr Taylor said the Coalition would continue to provide permanent migrants with “full access to health” and promised the Opposition would put “Australians first” in policies leading into the next election.

Opposition Leader Angus Taylor will use his first Budget reply speech on Thursday night to launch an aggressive Coalition pushback against Labor’s tax agenda, unveiling policies focused on housing affordability, migration and cost-of-living pressures.

In a sign the Coalition is sharpening its economic attack lines after last year’s election defeat, Mr Taylor confirmed the Opposition would fight Labor’s planned changes to negative gearing and capital gains tax concessions, arguing the measures would hurt Australians trying to “get ahead”.

“It’s an assault on aspiration,” Mr Taylor said during an interview on Sunrise on Thursday morning.

Mr Taylor said the Coalition would continue opposing the proposed tax changes through Parliament and would seek to repeal them if elected to government.

Thursday night’s Budget reply is also expected to include a stronger focus on migration and housing supply, with the Coalition proposing to tie net overseas migration levels to the number of homes available.

“Young Australians can’t buy a home because the level of migration is too high,” Mr Taylor said.

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Opposition Leader Angus Taylor will use his first Budget reply speech on Thursday night to unveil a sweeping Coalition fightback centred on tax relief, housing affordability and slashing migration, as the Liberals attempt to claw back support lost to Pauline Hanson’s One Nation.

The Coalition is expected to pitch measures targeting bracket creep, tying migration levels to housing completions and cutting building costs as Mr Taylor argues Labor’s Budget punishes aspiration and worsens the cost-of-living crisis.

The Opposition Leader is also set to promise a $5bn Housing Infrastructure Fund aimed at unlocking up to 400,000 homes, while accusing Prime Minister Anthony Albanese and Treasurer Jim Chalmers of overseeing higher taxes, lower living standards and fewer homes. Senior Coalition figures say Mr Taylor plans to “swing for the fences” as the party seeks to reset after last year’s election defeat.