A Labor pundit has claimed Prime Minister Anthony Albanese was groomed to look foolish amid scrutiny over rumored changes to negative gearing.
Lobbyist Cameron Milner, once chief of staff to former Labor leader Bill Shorten, says the leaked story that the Treasury was considering negative tax changes “was a well-placed political blow against the prime minister”.
Milner claims the leak to Nine newspaper journalist James Massola was carefully timed to come to light when Treasurer Jim Chalmers was on a 10-hour plane trip to China, while other senior Labor ministers were also abroad. , leaving Albanese completely exposed.
“The Prime Minister is never good under pressure, not even the slightest pressure,” Milner wrote in the Sunday Telegraph.
“Labor MPs watched in horror as the Prime Minister slipped and slid, then growled and berated journalists for the impunity of asking about another broken Albo promise.”
When Albanese took over as Labor leader from Shorten, he said changes to negative gearing were off the table.
In interviews last week, Albanese was repeatedly asked whether Labor would consider changes to negative gearing, and he repeatedly tried to dodge the question, leading to some heated confrontations with interviewers.
In a particularly testy interview, Sky News presenter Peter Stefanovic accused Albanese of previously “lying” about not changing the promised Stage Three tax cuts, which the government amended earlier this year.
Lobbyist Cameron Milner, who was once chief of staff to former Labor leader Bill Shorten, says the leaked story that the Treasury was considering negative tax changes “was a well-placed political swipe at the Prime Minister” (pictured , Treasurer Jim Chalmers and wife Laura)
With his fixed smile quickly disappearing, Albanese told Stefanovic that the promise had been broken because there was a “massive change of circumstances” with a cost of living crisis, adding “I hope you noticed.”
In another bitter interview, Albanese accused National Radio host Patricia Karvelas of asking “not very intelligent questions” when she questioned the government’s negative gearing plans.
‘The Prime Minister was a disaster as he melted before our eyes. “He continued to use the language ‘not our policy, not my plan,’ when he had previously been able to unequivocally rule out the negative shift,” Milner wrote.
Milner claimed that the “political coup” went better than expected and in turn Dr Chalmers “looked like a leader on the world stage”.
He claimed that the “deciding factor” and the “clearest sign that everything was planned” was that Dr Chalmers let Albanese “turn and turn in the breeze” for a full 48 hours before confirming that he had indeed requested a review of the negative gear.
Dr Chalmers said on Wednesday his department was examining possible policy changes, including negative gearing and the capital gains tax discount.
Albanese had several testy exchanges with interviewers after the negative gearing story broke.
“Treasury looks at all kinds of policy options all the time,” he told reporters.
“It is not unusual for the public service, and in my case my department, to look at issues that are speculated upon in the public or in Parliament, that is how a good public service works.”
On his two-day trip, Dr Chalmers announced that China was lifting import bans on Australian lobster and was implementing a stimulus package that would benefit Australian mining exports.
“Chalmers looked like a leader on the world stage this week, while at home Albanese looked like a liar,” Milner wrote.
Lobbyist Cameron Milner said Dr Chalmers planned to show that Albanese fights under pressure.
Shorten’s plan to get rid of negative gearing contributed to his losing the “can’t-miss election” to Scott Morrison in 2019 and the issue remains a sore point for many Labor members.
Negative gearing policies allow real estate investors to claim tax deductions when the costs of owning and maintaining their investment properties, such as loan interest and maintenance expenses, exceed the rental income they earn from them.
This tax benefit can reduce the real estate investor’s taxable income and is used by investors to reduce their tax bills.