Voters have given the federal government's major housing tax reforms a cautious nod of approval in one of the first polls since the budget, as Anthony Albanese and senior ministers fan out across the country to spruik the changes.
But it's not all good news for Labor, with Opposition Leader Angus Taylor edging in front as preferred prime minister for the first time in the Resolve Political Monitor.
The poll for The Sydney Morning Herald and The Age found 36 per cent of respondents support the government's capital gains tax changes, while 21 per cent are opposed.
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Another 42 per cent remain undecided, underlining how politically charged the debate has become.
The broader polling picture was less encouraging for Labor.
The government's primary vote slipped two points to 29 per cent, while One Nation climbed to 24 per cent. The Coalition sat on 23 per cent.
Taylor pipped Anthony Albanese as preferred prime minister, leading 33-30, with 37 per cent undecided.
READ MORE: Why you should care about negative gearing
The polling lands as federal leaders launch a nationwide campaign to win support for the budget's headline housing measures, including major changes to negative gearing.
But business groups, start-ups and property industry figures are warning the reforms could hurt investment and add strain to the rental market.
Under the government's overhaul, existing properties purchased after 7.30pm on budget night can only be negatively geared until July 1 next year.
After that date, negative gearing will apply only to newly built homes and to investment properties bought before the budget announcement.
READ MORE: Why it could take years for first buyers to benefit from housing tax reforms
The prime minister said the policy was designed to give younger Australians a better chance at buying a home.
"The investor who is bidding against someone who wants to live in that home as their first home won't have the taxpayer by their side," Albanese said.
At auctions across Sydney over the weekend, some first home buyers said they believed the reforms could ease competition from investors.
"In the past, we may have been competing with a lot of investors, but now with everything that's happened, that may change slightly," Matt Beck said.
Another buyer, Annie Ird, said the mood among sellers appeared unsettled after the budget announcement.
"Places that were up for auction are now going for sale, so I feel like people are freaking out a little bit," she said.
The pair missed out on a home at auction on Saturday but said they remained hopeful.
Housing economist Andrew Wilson said the market was likely entering a transition period as investor numbers ease.
"I think we'll see fewer buyers. And there should be a transition period between fewer investors and more first home buyers."
The Coalition argues the reforms will reduce investment and increase rental costs.
READ MORE: Chalmers takes a razor blade to negative gearing and CGT discount
"They're going to increase rents, build fewer homes and kneecap young Australians by taxing their first home deposit when it's invested," shadow treasurer Tim Wilson said.
Treasury modelling predicts the policy will slow house price growth by about 2 per cent over the next two years, while rents could rise by an average of $2 a week.
Wilson said lower house price growth was likely in the short term.
"I think in the shorter term it will put house prices under pressure. There's no doubt about that," he said.
For buyers like Beck, the debate goes beyond investment returns.
"This isn't an investment property search, it's a place to live," he said.
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