Per Capita welcomes tax reform for workers and first home buyers, disappointed social cohesion is not a focus.
Following tonight’s Federal budget announcement, Per Capita welcomes tax reform for workers, businesses and addressing intergenerational inequality. This includes reducing the Capital Gains Tax discount from 50% to inflationary-adjusted indexation, and restricting negative gearing to new builds.
CGT discount and negative gearing favour high income earners and investors, pricing out first home buyers. We believe that the changes can support more people to own their own homes, while also redirecting investors into new builds.
We also welcome investment supporting young people at risk of homelessness. We believe that social housing is the best form of rent control. However, there is little consideration for other wrap-around services such as health and mental health to help people stay in their homes. In our research, we found that for every $1 invested, $1.44 is saved through reduced use of health, justice and homelessness systems.
The real disappointment in the budget is the lack of initiatives to support effective social cohesion. While it is positive to see support for Jewish Australians, other culturally and religiously diverse communities are left out. Per Capita would like to see the implementation of the National Anti-Racism Framework.
Quote attributed to Dr Wesa Chau, Executive Director Per Capita:
“We are pleased that the Government is addressing intergenerational inequity. For over 10 years, Per Capita has argued to reduce the Capital Gains Tax discount and restrict negative gearing. The Government has listened and delivered.”
“It is disappointing that there is a lack of focus on social cohesion. While supporting Jewish Australians is vital, leaving other multicultural communities out does not achieve social cohesion.“
For more information please contact Per Capita Executive Director, Dr Wesa Chau at w.chau@percapita.org.au