A campaign urging Australians to voice opposition to proposed changes in capital gains tax (CGT) and negative gearing has intensified, following comments from Labor backbencher Claire Clutterham expressing reservations about the scope of the government’s tax reforms. The contestation puts additional pressure on the Labor caucus as it prepares to return to parliament.

Clutterham, who represents the South Australian seat of Sturt, communicated in an email to a constituent her support for concerns that the tax changes should be limited to the housing sector rather than broadly applied to other asset classes. She acknowledged that multiple constituents have raised similar issues with her and confirmed she had discussed these matters with Treasurer Jim Chalmers. Clutterham did not provide further comment when approached.

The tax reforms, introduced in 2019 under then-Minister Bill Shorten, aim to amend treatment of negative gearing and reduce the CGT discount, measures that the government argues will address housing affordability and intergenerational inequality. However, local opposition among Labor voters has been rising, particularly from those who stand to lose financially from the proposed policies.

Some Labor MPs representing electorates with significant numbers of affected constituents acknowledged receiving pushback but noted that recent modifications to the tax arrangements for small businesses and startups had eased some criticisms. One anonymous Labor parliamentarian conceded that the changes could influence voter sentiment at the next election but defended the approach, suggesting that avoiding reform altogether would have been worse.

Amid these developments, Geoff Wilson of Wilson Asset Management publicly encouraged investors and clients to contact their federal MPs to express their concerns before the parliament reconvenes. In a letter released Thursday, Wilson urged constituents not to assume the tax proposals would pass unchallenged and stressed the importance of making MPs aware of the potential impact on families and businesses.

The campaign has drawn attention to broader debates about economic fairness and intergenerational equity. For example, Ken McCracken, a long-term constituent of Parramatta in New South Wales, voiced fears in correspondence that the Albanese government’s focus on equity might undermine his financial security despite his prior efforts and sacrifices.

While the government maintains that its tax reforms are necessary to rectify imbalances in the housing market and support economic innovation, growing grassroots opposition signals an uphill battle to maintain broad public support as parliament prepares to vote on these contentious measures.