“Intergenerational inequality” is a new catch phrase doing the rounds of the Canberra bubble. If you believe the spin, those occupying the government benches and their boffins in the upper echelons of the bureaucracy really believe in equality. With Gen Z and Millennials now outnumbering Baby Boomers at the ballot box, politicians want to give the appearance of doing something to make life better for those under 40.
When Treasurer Jim Chalmers delivered the Federal Budget on 12 May, there was much fanfare that it would address inequality between generations. Hardly! For starters, a whopping 36.2 billion dollar cut to the National Disability Insurance Scheme will shove 160,000, mostly young people, off the scheme. In contrast, there was no shortage of funds for defence: $53 billion more over the next ten years! Chalmers partially rolled back three tax perks for the wealthy. However tax concessions for property investors will remain in place for new builds, and existing handouts to landlords will continue. Young workers, saddled with massive student debt, were underwhelmed as they stretch their shrinking wages to pay their ballooning rents.
All about class. The real divide in society is not between older and young people. It’s the yawning class divide. Last year, the wealthiest 10 Australians under 40 were worth a combined $31.7 billion, up 9.7 percent on their 2024 fortunes! Young entrepreneurs were complaining just as loudly as their parents about some of their tax perks being trimmed. To suggest that the children of the wealthy would struggle to buy a roof over their heads, when they own huge investment portfolios including properties, is clearly ridiculous.
Among older Australians, inequality is also stark. While billionaire mining magnate,
72-year-old Gina Reinhart, is the richest person in Australia, most living on the age pension are in financial hardship. More than one in five Australian retirees, and nearly 60 percent of older women who rent, live below the poverty line.
There are solutions. Without a doubt, life is tough for many young Australians. But a real plan to address their concerns — which would also address many of the issues struggling seniors face — would start with taxing the rich and redirecting funds from corporate welfare and defence to education, health, housing, disability services, childcare and the environment.
Tinkering around the edges of the tax system lacks ambition and seriousness. So let’s start here: Scrap all HECS debts now. Make education, from early childhood to university, free! Launch a massive construction program to build public housing. Guarantee secure work for everyone — end casualisation. Recognise the right to strike and scrap all anti-union laws. Youth Allowance, Newstart and all pensions must be increased to a living wage. Aged care must be fully funded and publicly operated. Make public transport free. Implement a plan of action to address the climate crisis.
