Tax breaks for investors are likely to be scaled back in Albanese’s May budget. But will it make housing cheaper?

The 50% capital gains tax discount, combined with negative gearing rules, have been blamed for supercharging debt-fuelled property speculation and contributing to unaffordable homes in Australia. They are expected to be targets in the May federal budget. Photograph: Mick Tsikas/AAP

The Albanese government is widely expected to scale back tax breaks for investors in its May budget, under the banner of fighting intergenerational inequity.

Investors, including landlords, only pay tax on 50% of their capital gains on investments held for at least 12 months.