Greens pressure – The Greens say the government’s tax reform—tied to intergenerational housing inequity—may entrench benefits for baby boomers rather than easing pressure on younger Australians, as the budget’s changes face a Senate test requiring Greens or the Coalition.
The government’s tax reform may not even clear the Senate before it hits resistance, with the Greens signalling they want answers on how the changes will affect young Australians locked out of housing.
Senator Barbara Pocock, speaking to reporters at Parliament House today, said the opening evidence at an inquiry into intergenerational housing inequity has pointed to budget measures that will “bake in tax benefits for baby boomers,” leaving younger generations “locked out.”
“The evidence is strong. The gap between generations on housing is very wide. It is not getting narrower,” Pocock said.
She also argued the budget changes announced last week would “make a very small difference” to the gap. “It would surprise me more if we got some sort of bounce in the polls from the difficult decisions we took in the budget,” Treasurer Jim Chalmers conceded earlier today.
Pocock said the government’s approach would not be enough to shift outcomes quickly. “And the changes that we saw in the budget last week will make a very small difference to that very wide intergenerational gap.”
Chalmers framed the budget as aiming for longer-term impacts on housing, particularly for younger Australians.. “We don’t hand down budgets expecting to make some kind of big near-term positive difference to an opinion poll five days later. ” he said. adding that the decisions were “to make a big positive difference to the housing market over time. particularly for young Australians who have been locked up for too long.”
Labor’s tax changes are expected to pass the House of Representatives because it holds the majority. But the legislation still needs a Senate pathway, where it will require either the Greens or the Coalition to secure support.
Opposition Leader Angus Taylor has already vowed to fight the changes and, if elected, repeal them.
So far, the Greens have not committed to supporting the federal government. Pocock said the party would be taking a “very careful look” at the legislation when asked about the Greens’ stance.
“We’re yet to see the legislation on the capital gains tax discount and negative gearing,” she said.. “They are a baby step in the right direction.. Unfortunately. they preserve benefits for very wealthy property investors and there are a range of things that could’ve been done which would’ve limited the locking in of that benefit that’s going mostly to baby boomers and really disadvantaging younger people.”
Pocock also suggested the Greens may use their position in the Senate to negotiate. “The Greens may also use their position to leverage Labor’s need for support to push through their own amendments.”
The inquiry will hear from Australians across the country over the coming months, with a focus on intergenerational housing inequity.
A clear tension runs through the claims being made: Pocock says evidence at the inquiry points to budget-linked tax benefits for baby boomers and a gap that “is very wide” and “not getting narrower. ” while Chalmers answers that the budget’s housing effects are meant to play out over time rather than deliver an immediate shift in public polling within five days.
9news.com.au has contacted the Treasury Department for further comment.
Australia news Greens Barbara Pocock intergenerational housing tax reform capital gains tax discount negative gearing Jim Chalmers Angus Taylor Senate