As the Guardian reports, Anthony Albanese appeared visibly moved on Saturday at the Labor Party’s state conference in Victoria as he justified his government’s controversial tax changes. The reforms, announced in last week’s federal budget, propose limiting negative gearing on property investments to new builds while grandfathering existing properties. They also include changes to the capital gains tax (CGT) calculation and a 30% minimum tax on discretionary trusts.
Albanese said he would ‘not allow Australia to become a country where aspiration is only for some’. He stressed the reforms were ‘the right thing, not the easy thing’ and would reorient the housing market in favor of first-home buyers rather than property speculators. Every Saturday, he said, young people ‘come up short’ at auctions because they compete against investors who ‘have the Australian taxpayer on their side’. ‘Because of the existing tax breaks, it’s not a fair contest,’ Albanese said.
Criticism of the plans continues unabated. The Guardian reports that even Labor MPs fear the reforms could trigger a ‘scare campaign’ that ‘spirals out of control’ unless Albanese and Jim Chalmers explain the changes more clearly. The government is under pressure to clarify the economic impact of the reforms.
Source: www.theguardian.com
