Young Australian voters say proposed federal budget changes to negative gearing and tax concessions will entrench benefits for older generations [1].
These reforms target the intersection of housing affordability and intergenerational equity. Because the housing market is a primary driver of wealth in Australia, changes to how investors are taxed can either open the market to first-time buyers or further solidify the holdings of existing landlords.
In interviews with Triple J Hack presenter Dave Marchese, young people said the government's approach to negative gearing, capital gains tax, and family trusts would not sufficiently help their generation [1]. The debate centers on whether tightening these rules will actually lower property prices or simply create a ceiling that prevents young people from ever entering the market.
Negative gearing allows investors to offset the cost of investment properties against their income tax. Currently, around 1.1 million investors use this mechanism for rental properties [3]. While the government aims to address affordability by reforming these concessions, critics said the changes may not be aggressive enough to disrupt the existing wealth gap [2].
Proposed shake-ups to capital gains tax and family trusts are also under scrutiny [2]. These mechanisms often allow wealthy individuals to minimize tax liabilities, a practice that young voters said creates an uneven playing field. The goal of the May 2024 budget was to tighten these tax breaks to redirect resources toward housing accessibility [3].
Despite these goals, the sentiment among youth respondents is that the system remains rigged. They said that by the time the reforms take effect, the window for affordable entry will have closed, effectively pulling up the ladder behind current owners [1].
“Young Australians say the budget’s proposed tightening of negative‑gearing tax breaks will mainly protect older generations’ benefits.”
The tension between tax reform and housing affordability highlights a growing generational divide in Australia. While the government attempts to use the 2024 budget to curb investor advantages, the perceived inadequacy of these measures suggests that legislative tweaks may not be enough to overcome the systemic barriers facing first-time buyers.
