Tax, Tax, Tax - Opinion Piece By Federal Member for Dawson Andrew Willcox

Tax, the three letter word Labor loves most, goes hand in hand with the other three letter word Labor does best - lie.  

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It would be mission impossible to count the number of times the Prime Minister, the Treasurer and senior Labor ministers promised there would be “no changes” to Capital Gains Tax or negative gearing. They said ‘no changes’ before the election, after the election and even earlier this year. Literally hundreds of times, they gave Australians the same assurance. Repeatedly challenged by the media, they doubled down every single time.  

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Then on Budget night, only a few weeks ago, the government announced that the changes would be brought in. These tax changes are not “intergenerational fairness”. They are nothing more than a tax grab designed to fund Labor’s wasteful spending and economic incompetence.  

And the people who will pay the biggest price are young Australians with aspiration.  

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Under Labor’s changes, existing investments will be grandfathered. Those already in the market keep the current rules, while younger Australians looking to build wealth through investment face higher taxes and fewer opportunities.  

A young couple hoping to invest in a rental property will no longer receive the same negative gearing benefits. A young worker wanting to build a share portfolio, trade crypto, or invest in a small business will face a higher Capital Gains Tax burden than previous generations. Laborclaims to stand for fairness, but there is nothing fair about pulling the ladder up behind you.  

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Taxing aspiration is profoundly un-Australian.  

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The economic consequences will also be severe. Labor itself admits these changes will place upward pressure on rents, although it claims the impact will only be around $2 a week. This is the same government that promised households would be $275 better off on their power bills. So, if the government’s own modelling is pointing to increased costs, the reality will be a disaster for renters.  

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With interest rates again marching north and home ownership becoming harder, more Australians, especially younger Australians, are relying on the rental market. Yet Labor is actively discouraging property investment.  

The economics are simple. Fewer investors mean fewer rental properties, tighter vacancy rates and higher rents. That hurts every Australian renter.  

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These changes will also discourage people from moving investment capital into more productive opportunities. Investors who remain under the existing rules will be reluctant to sell assets because any new investment will fall under Labor’s new tax regime. Flipping houses will become a thing of the past, meaning less stock returning to the market for prospective home owners. Instead of encouraging economic activity and investment, Labor is creating uncertainty and stagnation.  

The Coalition opposes these damaging new taxes and will repeal them in government.  

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Australia should be a country that rewards hard work, encourages investment and supports aspiration, not one that punishes people for trying to get ahead and set up their future.  

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Stop the lies – Reverse the Tax.  

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