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Coalition Accuses Labor of Stoking ‘Intergenerational War’ Over Budget Tax Hints

The government is weighing tax settings that it says could improve fairness between generations.

Overview

  • Shadow treasurer Tim Wilson said Labor is trying to pit young and old against each other as he attacked the pending federal budget in a Sky News interview.
  • Prime Minister Anthony Albanese has framed the budget around intergenerational equity and has not ruled out changes to capital gains tax and negative gearing.
  • Capital gains tax is charged on profits from the sale of assets, with a full exemption for a person’s main home.
  • Investment assets held for more than 12 months receive a 50% CGT discount, and negative gearing lets investors deduct rental losses from other income, which critics say crowds out first-home buyers.
  • Albanese said the budget will stress “resilience,” linking plans to make more in Australia and build social cohesion to a push for fairness in how the economy serves people.