Why millennials and gen Z feel ripped off by this budget
The federal budget's sweeping changes to investment tax breaks have been framed by the Albanese government as a way to bridge the generational divide on housing. But the pitch is not landing with everyone, and the backlash has been swift — from social media skits to satirical news posts. Treasurer Jim Chalmers argues the reforms will finally address intergenerational inequality, but many younger Australians say the measures protect existing property owners while locking them out.
The centrepiece of the budget is a plan to reduce the capital gains tax discount and scrap negative gearing for all but new homes, with existing investments grandfathered. The changes are designed to shift the way Australians make money — away from property investment and towards more productive areas. But that grandfathering has become the flashpoint. A satirical post from The Betoota Advocate captured the mood: "Labor to finally even the playing field for younger Australians by stopping future generations from using the tax loopholes that boomers will be allowed to keep using." A comedy skit by @fairbairnfilms titled Buying a house in 2026 concluded: "So everyone before me gets it good, and I get it shit." The video had gained more than three-quarters of a million views within a day.
Arwen Nugteren, a 24-year-old renter in Brisbane's south-western suburbs, told the ABC she fears becoming a "forever renter." About half of her income goes to rent, and after bills and essentials there is little left. A treat for her is occasionally spending $30 on lunch and a small dessert. She says she is not convinced the budget will change much because the government has only just started talking about intergenerational inequality. An ABC analysis of the last federal parliament found 77 politicians owned three or more properties. "All of these things that affect intergenerational wealth are probably going to be affecting our politicians," she 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."
One commenter on Mr Chalmers' pre-budget Instagram reel put it bluntly: "Looks like you're just taxing us more and grandfathering the benefits for boomers. This budget is a slap in the face to young people who are paying attention. AND WE ARE PAYING ATTENTION."
Mr Chalmers defends the changes. He told Insiders that under the existing CGT settings, shares had been "under compensated" for two decades, and argued it was better for people to invest based on economic outcomes rather than tax outcomes. "We're taking one of the big distortions out of the market," he said. "By taking that distortion out of the system, it is a fairer more neutral treatment of investment."
On the question of young people using rentvesting — renting where they live while buying an investment property elsewhere — Mr Chalmers said they could still do that with new builds. "They can continue to do that for the home that they already own, and they continue to do that in the future for new builds, which would be a very positive contribution that they would be making to our communities," he said.
But critics argue that targeting CGT, which applies to all investments including new shares and crypto, limits one of the only wealth-growth avenues available to young people. The Coalition has promised to reverse Labor's property tax changes if elected.
The budget also includes measures aimed at boosting supply. The government is spending $2 billion over four years for councils and utility companies to build roads, pipes, power and sewage connections to speed up new housing construction, which is expected to increase supply by 65,000 homes. However, the tax changes are expected to cut housing supply by 35,000 homes, as weaker investor demand reduces the pace of new construction. The net impact is estimated to be 30,000 extra homes.
The number of new homes under construction has already been steadily rising since a collapse after the pandemic, but the pipeline remains under pressure.
Beyond housing, the budget grapples with a broader demographic challenge. In 1975, there were seven working-age people for every retiree; today there are four. The Intergenerational Report, first published in 2002 under then-treasurer Peter Costello, warned that "a steadily aging population is likely to continue to place significant pressure on Commonwealth government finances" and that "if policies are not adjusted, the current generation of taxpayers is likely to impose a higher tax burden on the next generation." The budget papers warn that a greater tax burden on salaries and wages limits the ability of younger Australians to save and accrue wealth.
Ken Henry, a former treasury secretary, has applauded the budget, saying it takes a big step in the right direction to address intergenerational inequity. But the sense among many young people is that the system still works against them — and that the budget, despite its intentions, has not yet convinced them otherwise.