2026-06-30
In conversations about the Federal Budget, Greens should welcome the fairer taxation changes but deplore the NDIS cuts and note the many opportunities that could have been taken to make more substantial changes towards a much fairer society
By Rob Delves, a member of the Green Issue Editorial Team
For once, Labor has been brave enough to propose some positive reductions in inequality – and thus attracted a mass attack from the forces of wealth, privilege and conservatism. So it’s been an interesting Budget to talk about and I hope we have all enjoyed lots of fruitful sharing of ideas. Some of my most productive have been with Labor supporters. I’d like to share how I’ve been talking about it, mainly to encourage debate in our Regional Group.
Best three, worst three – a Speed Dating type of exchange
I think nearly all Greens would agree that the three best items are the winding back of the three tax minimisation schemes by the names of negative gearing, the GGT discount and discretionary trusts. Agreeing on the three worst things is a bigger ask, but mine would be the failure to tax gas exports, the brutality of the NDIS cuts and absolutely nothing for renters, students and the unemployed (this list of what’s missing could become very long).
Let’s explore what we have in common – a leisurely dinner date type of conversation
HOUSING MADE FAIRER: Negative gearing will only be available for investments in new-built property. However, properties bought before budget night are grandfathered – can’t say I’m madly keen on that bit. Previously Capital Gains were discounted at 50%, but this now reverts to the original system where the discount is the rate of inflation. This applies to all property investors, but those with existing investments still get 50% on gains up till budget night and inflation discounts for gains after then – I can say I’m a bit more keen on that type of grandfathering.
These twin measures should rebalance the bidding-power between investors and first-home buyers for existing homes – an important move towards fairness and of course one that The Greens have been promoting for many years now. They contrast with the last 25 years when we have been relentlessly screwing up housing and proposing “solutions” that only added to house price inflation (e.g. 5% deposit, first home buyer grants, early access to super to increase the size of your house deposit). However, we need to stress that these two changes are just small, though vital steps on the long road to the essential goal of securing decent, affordable homes for all.
I like to point out that The Greens, who initiated the push to pare back the CGT discount by setting up a Senate inquiry late last year, have as their starting point that there be no CGT discount and no exemptions or grandfathering of existing assets.
TRUSTS CUT DOWN TO SIZE: I didn’t have a clue what these tax dodges were all about – and surveys show that most people are as ignorant as me, mainly because only a very small percentage of people use them. Basically, setting up a trust is a way of owning assets that means you pay a lot less tax, mostly by splitting the income to minimise tax. The Budget change is you can use trusts but you must pay at least 30% tax. Wonderful move, especially as it is overwhelmingly the highest income earners who use trusts.
BAD INCLUSIONS: Once again I can boldly claim that nearly all Greens would agree on what the worst item is ‒ the savage cuts to the NDIS. Labor claims that they have to do this to preserve the NDIS. This implies that “preservation” is so people with disabilities can access the scheme – try running that con past the 160,000 who will be cut out.
AND SO MANY MISSED OPPORTUNITIES: We Greens might struggle to agree here, but I’m opting for no tax on gas exports as the biggest failing in the Budget. A 25% tax would raise $17 billion per year and decrease domestic prices. And if that 25% tax had been implemented when Labor was elected in 2022 it would have generated $70 billion in total by now.
Let’s wind up the dinner date by riffing on what goodies that sort of money could be used for – and of course agreeing on a second meeting, as there’s so much more to learn about each other’s thinking. First course would be how to counter all the attack-crap that business, mainstream media and conservative parties have been dishing out (my first bite would be taking on the over-used and abused phrase “killing aspiration”).
Header photo credit: Miles Burke via Pexels
[Opinions expressed are those of the author and not official policy of Greens WA]