Renee Coffey (Griffith, Australian Labor Party) Share this | Hansard source

Across Griffith, people are working hard to build secure, decent lives. People are raising children, caring for parents, running small businesses, studying, renting, saving, working and contributing to our community. They are making careful choices about household budgets, and they want a government that understands those pressures. That's why this is a budget that delivers practical help now and responsible reform for the future. It strengthens Medicare and backs in workers, it supports small business, investment and innovation—we are strengthening our fuel supply chains—and it delivers the most significant tax reforms in more than a quarter of a century. These reforms are measured, targeted and responsible. They are about building a better, fairer and simpler tax system that works for more Australians, not just those who already have wealth behind them. We are delivering reform that takes our intergenerational responsibilities seriously.

This government will not leave younger Australians with a broken housing system—unlike those opposite. Housing is one of the biggest issues I hear about across Griffith. I hear it from young people who are working hard, saving carefully and doing everything they were told to help get ahead. They are studying, working extra shifts, building careers, starting families and putting money aside for a deposit all while paying rent in one of the toughest housing markets we have ever seen. Since 1999, housing prices have risen more than twice as fast as average full-time earnings. Between 2001 and 2021, the homeownership rate for households aged 25 to 34 declined by seven per cent. We know that the system is broken and is not working.

I will share some words from someone I have a lot of respect for, Scott Pape, the Barefoot Investor. He said of the current system:

The system lets wealthy families with good accountants pay less tax than nurses and tradies. That doesn't pass the pub test.

Someone else who I have quite a bit of time for—I might be the only one on this side of the House—is the shadow treasurer. I do co-chair a parliamentary friendship group with the shadow treasurer. I'm not going to win any friends on this side! This is good evidence for why we should give him a little bit of time. He has said, in his wisdom:

There is no intergenerational justice in such preferential arrangements.

I think most people on this side agree with that. He also did say in this place:

The tax system is screwing over young Australians.

Those opposite would leave this system untouched. They would leave younger Australians to keep falling further behind. They would tell first home buyers to work harder, save harder and wait longer while defending tax settings—we heard it this afternoon—that have helped push homeownership out of the reach for too many. Young Australians should not be left behind in a country they are helping to build.

From 1 July 2027, negative gearing for residential property will be limited to new builds. That means investments will be directed towards adding more homes to supply. People will still be able to invest in property. People will still be able to build wealth. New builds can continue to be negatively geared before and after 1 July 2027. Properties held before the budget night will be grandfathered. If someone has already made an investment decision under the existing rules, they can continue to negatively gear the property until it's sold. I think they are all really important items in this discussion to understand, because there is just so much fearmongering going on at the moment. This is careful, responsible policy design which protects existing investment decisions while making sure future tax settings better support housing supply, an issue that this government is absolutely committed to confronting head on.

We are also reforming the capital gains tax. The current 50 per cent discount was introduced in 1999. It does not accurately reflect inflation and, depending on returns as a result, that can overcompensate investors while also undercompensating others. Our reforms return to cost base indexation based on CPI, with a 30 per cent minimum tax on real capital gains. In plain terms, investors will not be taxed on inflationary gains; only their real gains. The reforms only apply to gains after 1 July 2027, and only when the gain is realised.

Those opposite would protect the status quo. Labor is building a fairer tax system, a stronger economy and a housing market that gives more Australians a chance to get ahead.

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