OPINION: Labor’s Tax Trap is a Recipe for Rental Ruin
A poor nation is a weak nation, and, a nation with too much debt loses control of its destiny.
As we head toward the next Federal Budget, the talk of "redefining" the economy through changes to negative gearing and capital gains tax is a red flag for every Australian. This is not about reform; it is a desperate attempt to fix a budget blowout by robbing Peter to pay Paul. In this case, Peter is the hard-working Australian who has sacrificed to build a nest egg, and Paul is a government that simply cannot stop spending your money.
For many in Dawson, property investment isn't about being a tycoon, it is about security. Many investors worked through an era without compulsory superannuation. They put in the overtime and paid down their debts to ensure they wouldn't be a burden on the taxpayer in their old age. It is a gross insult to make these people the victims of poor fiscal management.
The government hides behind the word "fairness," but this is a calculated strike on the retirement nest eggs of hard-working families.
Here is the blunt, hard truth that the Albanese Labor government refuses to acknowledge: if you jack up the taxes on the person providing rental accommodation, that cost doesn't just vanish. It ends up on your weekly rent.
Property investors are not running a charity, they are providing a service, and when their costs go up, your rent goes up. By slugging the people who provide housing, the Treasurer is effectively slugging the tenants. This tax grab will be bankrolled by the most vulnerable people in our community, the families and renters who are already being crushed by the cost of living.
We have seen this play out before, and we do not want history to repeat itself. In 1985, the government tried this exact move, and, as a result, investment dried up and rents went through the roof. It was a failure then, and it will be a failure now. They are building a class of Australians who are entirely dependent on the government remaining in office. This is not about a better Australia; it is about securing power through an assault on the family unit.
The hypocrisy is where it truly hurts. This tax agenda is a direct hit on those retiring soon, yet it conveniently protects the power structures that keep this government in office. While Labor attacks your family savings, they are clearing the path for big industry super funds to buy up housing and rent it back to you. They are telling young Australians they cannot touch their own savings to buy a home, while letting their institutional mates use those same savings to become your new corporate landlord. We also see the cost of every new build skyrocketing because Labor refuses to stand up to the CFMEU, letting union-controlled projects bleed the taxpayer dry while everyday families pay the price.
Albo once told us his word was his bond; however, judging by this predicted tax assault, it seems that bond has been traded for a high-interest debt that our children will be paying off for decades.
Harder on families, harder on first home buyers, harder on renters, and harder on pensioners. That will be the Albanese Labor legacy if they push ahead with these ridiculous budget measures.
While they focus on stripping away your savings, they are letting in a record number of people we simply do not have the houses for.
Jim Chalmers has a choice to make before he delivers this budget. He can listen to the experts who warn that these changes could drive rents up by more than 20 per cent, or he can plough ahead and make this next year one of catastrophic hurt for Australians. Is he going to listen to the people who keep this country running, or is he going to stick to the same old Labor playbook of high taxes and higher debt?
ENDS
Contact: Amanda Wright | Media & Communications Adviser
P | 07 4944 0662 M | 0455 456 705 E | Amanda.Wright@aph.gov.au