Cap negative gearing and capital gains: how to patch Australia’s revenue hole

Treasurer Jim Chalmers has indicated Labor might pivot towards raising taxes. It’s a sensible move, especially if it targets Australia’s wealthiest.

While the Australian media were focused on Queen Elizabeth II’s passing, some potentially significant comments by Treasurer Jim Chalmers went underreported.

Chalmers told ABC Radio last week he intends to focus his first budget in October on delivering election promises before then tackling the economy’s “structural challenges” in his second budget next year. And because he views most fast-growing budget items — such as healthcare, aged care and the NDIS — as “untouchable”, some “politically sensitive tax and revenue measures might need to be confronted”.

It’s the biggest indication yet that federal Labor might cautiously pivot from its “small target” election agenda and seriously consider raising taxes.

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About the Author

Benjamin Clark

Columnist @ben_clark56

Benjamin Clark is a writer and media worker based in Melbourne. His work has appeared in Crikey, The Age, Junkee and Kill Your Darlings.