Despite ongoing backlash from property sector pundits, the federal government has dug its heels in on its intention to increase capital gains tax and curb the use of negative gearing.
The government has been under pressure from all sides since the budget was handed down last month due to a number of controversial inclusions that represented broken election promises.
But Labor insists that the reforms will make it easier for Australians to buy their first home and better align the treatment of labour and asset income.
Latest move
The latest concession is a proposal to ban self-managed superannuation funds (SMSFs) from borrowing to purchase residential properties.
It is part of a deal that the Labor government cut with the Greens to usher its great property tax legislation changes through the Senate.
Not enough
And despite pressure from the Greens to remove the grandfathering provision to limit negative gearing to new investment properties bought after budget night, Labor held firm on its proposed changes.
Australian Greens Leader Senator Larissa Waters says the changes don't go far enough.
She describes the decision as a move designed to help young Australians, expressing frustration that young people and renters have been ignored.
"By grandfathering in wealthy property investor tax perks, Labor has once again chosen to put the 1 per cent over the millions of people trying to buy their first home.
"Backing this bill puts an end date on these tax breaks, but Labor's low ambition means that inequality and the housing crisis will be worse for longer," Waters says.
Will it affect the new home pipeline?
The Property Council of Australia also warns the move will weaken investment and reduce new project starts in a time of housing deficits.
Chief executive Mike Zorbas says that while the new housing carve-out remains in the legislation, the overall package risks weakening investment sentiment and supply at the worst time.
Broader tax measures only compound issues, including proposed changes to discretionary trusts and other investment structures.
"By the government's own numbers, that means tens of thousands fewer new homes at a time when we need to add to supply.
Other industry players have also expressed frustration.
Disappointing development
Property Investment Professionals of Australia (PIPA) chair Cate Bakos says the government's decision to trim the wings of those safely growing wealth within an SMSF is disappointing.
While PIPA supports tighter regulation around financial advice and property investing, Bakos says the move will negatively impact diversification within SMSFs.
"Given that most self-managed superannuation balances are insufficient to purchase property outright, meaning that a limited borrowing recourse arrangement is often the only option for a fund to invest in direct property.
Blow to confidence
Meanwhile, Real Estate Buyers Agents Association of Australia (REBAA) vice president Zoran Solano points out that consumer confidence shifted overnight after the Federal Budget.
Solano says housing affordability will be improved by increasing housing supply, not simply reducing the number of buyers.
"While the market is still working through the full economic impacts, investor sentiment has already changed significantly. SMSF property investors represent a very small proportion of Australia's housing market, so, it's difficult to argue they are driving the nation's housing affordability challenges."
It is now a question for the rest of Parliament whether they will get on board with tax cuts.