Their submission backs changes to superannuation performance tests so they can invest in the property sector, and recommends that planning rules be altered to accelerate the construction of new homes.
This week, figures from property analytics company Cotality showed median property values lifted another 0.6 per cent nationally, having increased every month since the Reserve Bank started cutting official interest rates in February.
The ACTU is proposing changes to negative gearing and capital gains tax that it believes would help younger Australians into the property market.Credit: Steven Siewert
The median house value in Sydney has now surpassed $1.5 million, it is above $1 million in Brisbane, and Canberra is likely to reach that level in the coming months.
McManus said levelling the playing field between property investors and first-time buyers had to be on the government’s agenda, while the ACTU also backed reforms to regulations around planning and construction to get more properties built.
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“This is the most important issue when it comes to addressing living standards, given what we have now is particularly unfair for younger generations,” she told this masthead.
“People need to be able to live near where they work.”
Figures released last month by the Australian Taxation Office revealed that 91 people in the 2022-23 financial year had income of more than $1 million but paid no tax.
The ACTU wants changes to the nation’s tax laws that would require people earning more than $1 million to face at least a 25 per cent tax impost.
While many financial trusts pay at least 25 per cent in tax, the union movement wants that set as a minimum level for all trusts.
The nation’s oil and gas companies would face a 25 per cent “energy levy” on exports of LNG, while a $20 million cap would be set for businesses that claim fuel tax credits.
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In total, the ACTU’s proposals would raise about $25 billion in additional revenue. Treasurer Jim Chalmers has told organisations he wants ideas that are either budget-neutral or improve the budget bottom line.
McManus said apart from channelling that revenue into improved services, the union movement wanted improvements to regulations on the construction of major projects, particularly those instrumental to the net-zero transition. “We need to get yes or no on projects quicker,” she said.
McManus is one of two ACTU representatives to be part of the roundtable that will be held between August 19 and 21.
Tax and regulations are slated for discussion on the second and third days of the roundtable, which is due to be held in the federal Cabinet room.
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