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HomeAUIs the Government's Tax Reform Doomed Before It Starts?

Is the Government’s Tax Reform Doomed Before It Starts?

The federal government will need the Greens in their corner to pass the tax reform they bet the house on, but the minor party has criticised the changes.

Greens Senator Barbara Pocock highlighted concerns at the inaugural session of the inquiry into intergenerational housing inequity, emphasizing that the current budget perpetuates tax advantages for baby boomers, thereby sidelining younger generations.

“The evidence is compelling,” Pocock stated during a press briefing at Parliament House. “The housing gap between generations is substantial and remains unbridged.”

Greens Senator Barbara Pocock at Parliament House today.
Greens Senator Barbara Pocock at Parliament House today. (Nine)

Reflecting on the recent budget announcements, she added, “The modifications introduced last week will scarcely impact this significant intergenerational divide.”

Treasurer Jim Chalmers acknowledged earlier today, “I would be more surprised if the budget’s tough choices led to an immediate boost in the polls.”

“Our budget decisions aren’t aimed at instantly swaying public opinion within five days,” Chalmers explained. “Instead, they are designed to create a lasting, positive effect on the housing market, particularly benefitting young Australians who have been excluded for far too long.”

Labor’s changes will likely sail through the House of Representatives, where they hold the majority, but they will need either the Greens or the Coalition to pass the Senate.

Opposition Leader Angus Taylor has already vowed to fight the changes and, if elected, repeal them.

Treasurer Jim Chalmers arrives at Australian Parliament House ahead of handing down the 2026 budget on May 12, 2026 in Canberra, Australia.
Treasurer Jim Chalmers handed down his budget last week. (Hilary Wardhaugh/Getty Images)

The Greens have not yet stated whether they will support the federal government.

Pocock said the Greens will be “taking a very careful look” at the legislation when asked about the minor party’s stance.

“We’re yet to see the legislation on the capital gains tax discount and negative gearing,” she said.

“They are a baby step in the right direction.

“Unfortunately, they preserve benefits for very wealthy property investors and there are a range of things that could’ve been done which would’ve limited the locking in of that benefit that’s going mostly to baby boomers and really disadvantaging younger people.”

The Greens may also use their position to leverage Labor’s need for support to push through their own amendments.

The inquiry will hear from Australians across the country over the coming months. 

9news.com.au has contacted the Treasury Department for further comment.

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