Labor MPs, unions push for more cost of living relief, negative gearing changes
There is support within Labor ranks for re-visiting the party’s negative gearing policies in a future term.
There is support within the Albanese government for revisiting Labor’s negative gearing policies in a future term, as MPs and unions push for immediate cost-of-living relief before the stage three tax cuts are introduced on July 1.
While they are concerned about taking on too many political risks, MPs are warning that the policy settings are benefiting investors rather than first-home buyers and would like the tax setting to be amended to help younger generations get into the property market.
One MP, who supports the change and has raised it with Jim Chalmers, said it would need to be put to an election so that the party had a mandate for it, acknowledging that “one broken promise is enough for one term”.
Another MP said there was broad support in caucus for changes to negative gearing, with members concerned older generations unfairly benefit under current laws.
“It should not be easier to buy your second and third house than to buy your first,” they said.
However, caucus members expressed concern it would be difficult to weather a political campaign against tax changes after the party’s loss in 2019.
Labor MPs and unions are pushing for more cost-of-living relief to be rolled out on top of the rewrite of stage three tax cuts, warning more needed to be done to help struggling households before the changes kick in mid-year.
Unions demanded the government act to address high electricity prices, crack down on price gouging by companies and work with the states to raise workers’ skills as part of a broader national housing strategy.
Electrical Trades Union national secretary Michael Wright said the “No.1 item” to address cost-of-living pressures was for the government to provide assistance with household electrification.
ACTU secretary Sally McManus said the peak union body also wanted increased support to “grow the renewables industry to push down energy prices to help with the cost of living” and called on Labor to crack down on price gouging.
Australian Manufacturing Workers Union national secretary Steve Murphy said the big cost-of-living pressures being faced by his members were housing costs, increasing bills, particularly electricity and groceries and fuel costs, while CFMEU construction national secretary Zach Smith renewed the union’s call for the government to impose a super profits tax on employers.
After Anthony Albanese on Sunday signalled the government was looking at further relief ahead of the May budget, Labor MP Graham Perrett urged the Prime Minister to help families with children going back to school.
“I know there will be money in people’s pay packets from July 1 but that’s one of the issues that’s been hitting right now,” Mr Perrett said.
The Labor MP for the outer Sydney seat of Macarthur, Mike Freelander, said the government must do more to help people with cost-of-living pressures, especially rising medical and transport bills, and backed an extension to Labor’s energy rebate scheme.
“The pressure on medical costs is also very large as we approach the 40th anniversary of Medicare and more needs to be done to improve people’s access to primary care,” Mr Freelander said.
“A big factor in outer metropolitan areas like mine are travel costs and I’d really like something to be done there. It’s a killer, it really does cost thousands of dollars each year.”
The Australian understands the Treasurer assured Labor MPs during the snap caucus meeting to discuss the stage three tax cut overhaul last week that the government was working on further cost-of-living measures before the budget.
Labor MP Brian Mitchell backed an extension to the government’s energy bill relief package and said more cost-of-living relief should be considered.
Colleague Shayne Neumann said he would be pleased to see further energy relief for households in the budget.
Economists urge RBA to follow US and spare the rates cut knife
After the US Federal Reserve kept rates on hold for the first time since July, JudoBank chief economic adviser Warren Hogan said it was ‘very much a cautionary tale for the RBA’.
Federal Labor on a collision course with miners over green push
The federal government has made a powerful enemy for itself in the west after the Chamber of Minerals and Energy WA said it would fight Labor’s push for so-called nature-positive laws.