Could the government’s tax reform fail before it even begins?

Greens Senator Barbara Pocock said the first day of the inquiry into intergenerational housing inequality found the budget will provide tax breaks for baby boomers, leaving out younger generations.

“The evidence is strong. The gap between generations in housing is very wide. It is not closing,” she told reporters at Parliament House today.

“And the changes we saw in the budget last week will make a very small difference in that very big gap between generations.”

“I would be even more surprised if we had some kind of surge in the polls as a result of the tough decisions we made in the budget,” Treasurer Jim Chalmers admitted earlier in the day.

“We don’t pass budgets expecting them to make a big positive difference in the short term in a poll five days later. We make these decisions to make a big positive difference to the housing market over time, especially for young Australians who have been cooped up for too long.”

Labour’s changes are likely to pass the House of Representatives, where they have the majority, but they will need the Greens or the Coalition to pass the Senate.

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

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

Pocock said the Greens will look at the legislation “very carefully” when asked about the minor party’s position.

“We have yet to see legislation on the capital gains tax credit and negative gearing,” she said.

‘They are a baby step in the right direction.

“Unfortunately, they keep the benefits for very wealthy real estate investors and there are a number of things that could have been done that would have limited the entrenchment of that benefit, which goes mainly to baby boomers and really puts younger people at a disadvantage.”

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

The inquiry will be heard from Australians across the country in the coming months. 

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

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