‘Constantly giving, getting nothing back’: Youth want tax reform

She also believes multinational corporations could be taxed more, and is concerned that intergenerational inequality is shrinking the size of the middle class.

“It’s hard to talk about taxing the elderly more [but] for some, those who own multiple investment properties, got to retire at 60 years old ... I don’t really want to be paying for them if they’re sitting on multiple properties, while people my age can’t get a consistently fair rent,” Ms Smith said.

“When it feels like you’re the generation who’s constantly giving, and not getting anything back ... I think that’s where it becomes really complex.”

Younger generations are desperate for bold action.

— Jane Body, ThinkForward general manager

Ms Smith owns her home with her husband, a banker, but says she feels “almost guilty” about it – it wouldn’t have been possible without an inheritance he received, and her own parents going guarantor.

“Having to lean on another generation to get something that everybody should be entitled to, like a home, feels really unfair.”

Meg Brodie, 31, says questions about intergenerational equity have sparked tension at her family dinner table. Her parents say Baby Boomers acquired their wealth and property with the intention to pass everything on, while she feels her generation has been locked out of the housing market.

Ms Brodie, a policy and economics advisor at a community organisation in Melbourne, said she would support paying a higher GST rate if it meant lower income tax. But she believed “distortionary” settings such as negative gearing and capital gains tax concessions were more pressing concerns.

“In Australia, property is such a store of wealth compared to similar countries and because it is essentially conceived as an asset class, it is probably fairer that it is taxed as such, with the exception of the family home,” Ms Brodie said.

“So I would be very open to changing the current way investment properties are taxed. I think negative gearing is a failed policy and the capital gains tax concession also continues the unfairness and inaccessibility of the housing market, which is very skewed and needs to be reset. Those distortionary policies need to go.”

Jane Body, general manager at intergenerational fairness advocacy group ThinkForward, said increasing tax take through GST rather than increasing income tax – which former Treasury boss Dr Ken Henry has labelled an “intergenerational tragedy” – would create a more equitable system.

But she, too, would prefer to see action taken on property taxes.

“I get so frustrated with the mainstream discourse being solely hinged on boosting supply,” said Ms Body, 32. “Of course that’s part of it, but if we don’t fix issues around tax settings and property investment, more supply will just mean more opportunities for investors.

“Younger generations are desperate for bold action. Millennials and Gen Z have become the biggest voting bloc, so politicians should not be scared of this. If we’re continually locked out of the housing market, there will be a voting shift.”

Economist Emma Grey, 31, also isn’t concerned about higher taxes, but thinks that different ways of taxing wealth need to be considered.

Ms Grey rents in Melbourne, and favours shifting away from stamp duty towards land tax so that homeowners with much larger properties pay a greater share based on their housing wealth.

She also believes an inheritance tax should be considered, noting that she stands to be a beneficiary from inheritance and the property her parents own.

“We do have to get serious about tax. If we want to continue having growth in our social services, government services, in our health and education systems, we do need more tax to fund that,” she said.

“It’s a huge thorny issue, but in principle I’m not opposed to an intergenerational tax.”

She’s concerned Australia has a “not in my backyard” approach to tax. “It’s like, we want more social services ... but we don’t want to pay for it personally. But we have to, if we want that.“