RBA and Chalmers blame interest rates and tax for house price falls

Jun 2, 2026 – 4.00pm Reserve Bank of Australia monetary policy board member Ian Harper and Treasurer Jim Chalmers say the slowdown in the housing market is due to a combination of interest rate rises and the federal government’s changes to capital gains tax breaks and negative gearing. Both Chalmers and Harper said their respective policy goals were not to target house price outcomes. The treasurer dodged questions on whether a recent slowing in house price growth helped achieve the budget’s goal of improving intergenerational equity in the housing market. Subscribe to gift this article Gift 5 articles to anyone you choose each month when you subscribe. Subscribe now Already a subscriber? Fetching latest articles