Treasurer Jim Chalmers has pushed back against criticism that Labor’s proposed tax reforms will unfairly burden young Australians who rely on the share market, ETFs and rentvesting to build wealth.
The federal budget unveiled plans to reduce the Capital Gains Tax (CGT) discount and limit negative gearing to new homes only, with all existing assets grandfathered. Because CGT applies to shares, ETFs, property and crypto, critics argue the changes restrict one of the few remaining wealth‑building pathways available to younger Australians.
Chalmers rejected that argument, saying the current CGT system has “under‑compensated” shares for two decades, and that investment decisions should be driven by economic fundamentals rather than tax distortions.
For deeper context, you may explore Capital Gains Tax changes or negative gearing reform. “We’re taking one of the big distortions out of the market,” he told Insiders, insisting the reforms create a fairer, more efficient system.
Coalition Promises to Reverse the Changes
Shadow Treasurer Tim Wilson blasted the reforms, accusing Labor of “knee‑capping self‑starters.”
“Young Australians are buying shares, ETFs and crypto at record rates,” he said. “The idea that the treasurer can dictate to Australians their pathway, their dreams, their success, is not just arrogant, it’s ignorant. The Coalition has vowed to reverse the tax changes if elected.
The debate cuts directly into generational economic anxiety housing affordability, investment access, and the shrinking number of ways young people can accumulate capital. With both sides framing their positions as defending opportunity, the issue is likely to remain a central economic flashpoint.
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