How Australians across generations feel about the budget

The ABC spoke to people across generations to find out how they feel about the federal budget. (ABC News Graphics: Kylie Silvester) Link copiedShareShare article Arwen Nugteren is a young renter who lives in Middle Park, in Brisbane’s south-western suburbs.(ABC News: Ben Cocklin)About half of Arwen Nugteren's income goes to her rent. Once the 24-year-old's bills and essentials are settled, there's little left over. A treat for her is occasionally spending $30 on lunch and a small dessert. Arwen is afraid she might be a "forever renter" because saving for a deposit is not an option for her. "The question really becomes, 'Are you ever going to buy a house in Australia?'" she told the ABC. Leading up to the budget, the Albanese government talked about the need to address intergenerational unfairness, specifically housing affordability for young people. The ABC asked Australians across generations, from gen Z to baby boomers, about Treasurer Jim Chalmers' fifth federal budget. Gen Z renter Arwen wasn't convinced she would see much change because the government had only just started talking about intergenerational inequality. An ABC analysis of the last federal parliament found 77 politicians owned three or more properties. Those statistics make it hard for Arwen to believe there will be meaningful change to the housing market. "All of these things that affect intergenerational wealth are probably going to be affecting our politicians," Arwen said. "They don't necessarily back it up with the type of genuine reform that I would feel is needed to get our housing market and generational inequality back under control." That gap between the generations on housing has grown exponentially over the past two decades, according to data from the Australian Tax Office. In the 1999–00 financial year, 96,269 people under 30 owned at least one rental property, which was almost the same as those aged 60 or more, where that number was 122,947. The age group with the largest share of rental properties was those aged between 40 and 49, with 28 per cent of rentals in Australia, which represented 327,357 properties. In that same year, the Howard government introduced changes to the Capital Gains Tax (CGT) discount. The Grattan Institute said the combination of the changes to the CGT discount and negative gearing distorted investment decisions. More than two decades on, 27 per cent of rentals were owned by those 60 or older, which was the most of any age group, and represents 609,507 properties. Despite population increases, people under 30 now own a smaller share of the rental market, with 83,786 owning at least one rental property. What do you want from the budget? More targeted taxes on the wealthiest, and changes to CGT and negative gearing. Do you expect it to happen? Yes, but not enough to have an impact. Is balancing the budget important? Yes, but not at the expense of cuts to infrastructure and services. About a week before the budget, Arwen packed up and moved out of the old rental she had been living in for just over a year. Her new place in Brisbane's south-west was her third rental in as many years. She hopes one day, if she finds a higher-paying job, she might be able to buy a "tiny little apartment". "I would love my own place. It's just that security, it's safety," she said. "You don't have a landlord who just kicks you out or changes their mind. You can do what you want with it." Arwen said changes to the CGT discount and negative gearing would convince her the government was serious about addressing intergenerational inequality. She believes these tax incentives made property attractive for investors at the expense of younger first-home buyers. "If those things actually started having changes, then I would believe the government did actually care," she said. "If nothing changes … I feel like it would really be pushing our country backwards if we've got more people who aren't able to afford a life. "Do I move to a different country where houses are cheaper?" Once Arwen watched the treasurer's budget speech, she was left with the impression that it all felt too good to be true. She was happy to see the changes, but does not believe it will affect housing affordability overnight. The changes to the CGT discount and negative gearing made her feel the government's rhetoric about addressing intergenerational inequalities was not just empty statements. The change to the CGT discount will see assets such as shares and investment properties owe tax on any profits made beyond inflation from July 2027. While negative gearing was also limited to newly-built homes, it was still claimable for existing investment properties purchased or exchanged before May 12. Arwen said she did not mind that the government had broken an election promise in making the change because it gave younger people like her hope that the government heard their concerns about housing. "It's like they're starting to make

How Australians across generations feel about the budget

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How Australians across generations feel about the budget

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