Housing Minister Clare O'Neil has come under fire after branding critics of the government's housing and tax plans as 'internet finance bros'. The controversy erupted following the Federal Budget announcement of a crackdown on negative gearing, which will be limited to new builds from July 2027. Additionally, the government plans to replace the 50 per cent capital gains discount with a flat 30 per cent rate indexed to inflation.
O'Neil's Social Media Video Sparks Debate
In a video posted on Wednesday, O'Neil questioned the motives of online commentators who criticised the new measures. 'Does anyone else find it weird that a whole bunch of internet finance bros are suddenly concerned about renters?' she asked. 'I've watched quite a few of these videos, and a lot of it is just straight-up misinformation.'
The statement followed a viral series of posts by Frank Greeff, who sold his real estate marketing company RealBase for $180 million in 2022. Alongside AI-generated images of himself beside Prime Minister Anthony Albanese, Greeff falsely claimed the changes could see businesses pay up to 47 per cent in capital gains tax (CGT). However, the government's change means only businesses in the top tax bracket could face such rates on capital gains from business sales.
Greeff Apologises but Stands by His Concerns
After the viral posts made headlines, Greeff apologised on Instagram for his approach but insisted he had highlighted a genuine issue. 'I apologise if the approach has left a bad taste in your mouth or a bad impression,' he wrote. 'This is about the next generation and making Australia a great place to build a business and to become a productive country with a culture of aspiration.'
O'Neil, however, used her video to question the motives of those criticising the government. 'When you see a video from a finance bro defending these tax concessions, it's worth thinking about what they stand to gain,' she said. 'There's a lot of voices in this conversation, but not all of them are advocating for you.'
Government Defends Budget Changes for Younger Australians
O'Neil also aimed to clarify how the changes would impact younger Australians. 'They're not cashing in on capital gains,' she said. 'They're not focused on trusts, and they're certainly not worried about how they're going to negatively gear property number five. The young people I know are getting wages from a frontline job. They've got a HECS debt, they've got rent due, and they are sick of the status quo. They know that something needs to change.'
The housing minister added that the Federal Budget was designed with these Australians in mind. 'We're levelling the playing field so you can get into your first home,' she said. 'It means every auction you go to, you're going to have a better chance of winning, and this will get 75,000 renting households into home ownership.'
Young Australians Push Back
But younger generations have pushed back, accusing the government of misreading their financial reality. 'I'm a uni student and I invest in shares, so do many others I know who are also studying,' one commenter said. 'Please let us speak for ourselves on what actually benefits us. You are taking away wealth-building methods that you yourself have used when you owned investment properties.'
Another Australian said young people use the share market to help build their wealth. 'The young guys at work talk non-stop about the share market. They can't afford housing, so this is where they invest,' they wrote. 'I work in the building industry, not some finance company or bank. So, these poor young people will be punished, and they're being told it's helping them?'
Government Stands Firm Amid Growing Criticism
The government is standing by its budget despite growing criticism from small businesses and start-ups over its capital gains tax overhaul. In an interview with The Daily Aus, Treasurer Jim Chalmers was challenged on his claim that one in ten Australians under 28 own shares, which he said reflected Treasury data. However, ASIC data suggests the figure is significantly higher, with nearly one in five young Australians having investments.
'I think sometimes, when you read commentary about the change we made on (Budget) night, it kind of assumes that everybody is in the share market,' Chalmers said. He added that the changes were intended to push investors into the share market, away from housing. Ministers say they will consult with the start-up sector over the next fortnight, ahead of Parliament's return in June to pass the Budget.
