The Treasury has released modelling showing that 90% of young Australians would be better off under the Albanese government's proposed tax reforms, which include a $1,000 automatic tax deduction, a $250 'working Australians tax offset' (Wato), and changes to capital gains tax (CGT) and negative gearing. Treasury Secretary Jenny Wilkinson presented the data at an Australian Business Economists lunch in Sydney.
Wilkinson stated that the cumulative impact of the reforms would benefit around 90% of young people, before accounting for housing market effects. She added that had the changes been in place since 2000, those under 30 today would be in a stronger financial position. The modelling considered lifetime income, finding that only those in the top 10% of lifetime earnings would be worse off by age 30 under the new system.
Reserve Bank research released on Thursday showed that the proportion of property investors under 40 fell from 35% in 2000 to 20% in 2023, while those over 60 rose from 12% to 28%. Critics have warned that young people with significant share investments could face higher taxes, but Wilkinson acknowledged trade-offs and noted that post-tax profits would still be enjoyed.
The government introduced the tax changes to parliament on Thursday, facing heated debate. Opposition Leader Angus Taylor called Prime Minister Anthony Albanese an 'arrogant prick', while the Nationals demanded an early election. Labor is pushing to pass the reforms before the winter break, with a Senate inquiry due to report by 22 June.
