Albanese Denies Tax Changes Aimed at New Gen Z Voters

Prime Minister Anthony Albanese has denied that the addition of 700,000 gen Z voters to the electoral roll by the next federal election influenced the negative gearing and capital gains tax changes announced in Tuesday’s federal budget. Albanese told ABC’s 7.30 program that he considered only the merits of the policy change.

He stated that focusing on good policy ensures the politics will follow. The prime minister said the government could not continue to allow income from labour to be treated differently from income derived from assets. He added that the changes serve the interests of young Australians, social cohesion and the national interest.

Asked how he would explain to a young person that existing negative gearing advantages are locked in for older generations, Albanese replied that negative gearing remains available for new builds. He noted the average holding period for negatively geared properties is a little over five years because owners either sell or the property becomes positively geared.

Albanese said the government is ensuring it does not alter the basis on which people entered property investments under the previous arrangements. He also argued the capital gains tax changes would deliver productivity gains by reducing the current system’s distortion of investment toward housing and away from equities.

The prime minister said some negative reaction from the investor community has not been based upon the policy itself. He committed to further consultation on the change.

Taylor is scheduled to give the budget reply speech tonight. The live politics coverage will continue through the afternoon in the lead-up to the address. Other developments include a pending federal court decision on whether supermarket chain Coles used illusory and misleading discounts on everyday products.