One of the more contentious points in the new budget among young ‘uns has been the lack of concrete efforts to address housing affordablity in Australia, which – as you might be aware – is a little bit of a sticking point among Gen Y in this country. A lot of people were specifically annoyed by the lack of political will to address or reform negative gearing.
Fearless Leader Malcolm Turnbull popped up on Jon Faine‘s radio show in Melbourne to talk all matters budget – and the convo turned to housing affordability.
Turnbull has previously rejected the claims that negative gearing and capital gains tax arrangements disproportionately benefit rich baby boomers, saying that it is completely normal that “people on the highest incomes will make the highest gains, because they tend to have more property”.
Faine pressed him on the concept that there was a developing intergenerational conflict – with many young Australians feeling like they’ve been locked out of the market because of the economic activity of their parents. He said that his own children were locked out of the market.
“Well you should shell out for them,” Turnbull replied. “You should support them, a wealthy man like you.” He went further: “You can provide a bit of intergenerational equity in the Faine family.”
The implication obviously being that housing affordability can be solved on an individual basis by having parents support their kids in buying a home – presumably through financial contributions. Obviously Turnbull was having a laugh, but it does indicate something pretty important: dealing with Gen Y grievances about housing affordability and the high price of property is not a focus for his government.
He reiterated his support for negative gearing, saying that it was “very much an investment approach that’s taken by middle Australia, by millions of people”. So there ya go: there won’t be a change of heart here.
Source: The Guardian.
Photo: Getty Images / Stefan Postles.