Australia unveils tax reform targeting housing affordability

The Australian government has introduced a major tax reform package to parliament, with officials arguing it will improve housing affordability for younger generations while facing significant criticism from business groups and some state leaders over its potential economic impact.

Treasurer Jim Chalmers introduced the legislation to the House of Representatives on Thursday, calling it a bill for workers, for first home buyers and for future generations. The package includes changes to negative gearing and capital gains tax concessions, alongside a $250 per year tax rebate for workers. The government argues the current system, which taxes labour income at a higher rate than investment income, has locked young people out of the housing market.

In a post-budget address the same day, Treasury Secretary Jenny Wilkinson presented analysis suggesting the reforms would have benefited about 90 percent of young Australians if they had been in place over the past 25 years. She described the changes as the most significant reforms to the tax system in a quarter of a century, stating they would help arrest the decline in home ownership rates and improve the efficiency of capital taxation....