Modelling shows 90% of young Australians will be better off under Labor’s tax reforms

Ninety per cent of young Australians will be better off under the Albanese government’s tax proposals, the Treasury claims, as Labor moves to pass its reforms into law. The government introduced the tax changes to parliament on Thursday before a heated question time in which the opposition leader, Angus Taylor, called Anthony Albanese an “arrogant prick”, while separately the Nationals demanded the government call an early election. Earlier on Thursday, Treasury secretary Jenny Wilkinson shared the previously unreleased modelling at an Australian Business Economists lunch in Sydney. Wilkinson said the combined effect of the automatic $1,000 tax deduction, $250 “working Australians tax offset” (Wato) and the capital gains tax and negative gearing reforms would benefit most young people. “The cumulative impact of the reforms is assessed as benefiting around 90% of young people, before impacts in the housing market are taken into account,” she said. Had the changes been made decades ago, those under 30 today would be in a better financial position, she said. “Around 90% of Australians would have been better off by age 30 had the proposed changes been in place from 2000, with the benefits of the Wato and instant deduction outweighing the impact of the savings tax changes,” Wilkinson said. The modelling considered all Australians in terms of their total income over their lifetime. …