A leading Australian trade union has launched a forceful campaign to dismantle key housing tax concessions, labelling them drivers of inequality that have turned homes into vehicles for "hoarding wealth."
Union Proposes Sweeping Tax Overhaul
The Australian Manufacturing Workers’ Union (AMWU), which is aligned with the Labor Party, has called for the 50% capital gains tax (CGT) discount on investment properties to be phased out entirely within two years. In a submission to a Greens-led Senate inquiry, the union also demands an effective end to negative gearing, which allows investors to offset property losses against their income tax.
The union argues these policies have "commodified" housing, exacerbating a severe affordability crisis. "The commodification of houses into a vehicle for accumulating and hoarding wealth has exacerbated inequality," the AMWU's submission states, accusing property developers and investors of profiting while workers are denied home ownership.
Budget Impact and Alternative Proposals
The financial scale of the CGT discount is substantial. Treasury forecasts indicate it will cost the federal budget $21.8 billion in forgone revenue for the 2025-26 financial year alone. The AMWU proposes redirecting revenue from winding up these concessions to boost Australia's modular housing industry.
Other stakeholders have echoed calls for reform. The Australian Nursing and Midwifery Federation warned the discount worsens affordability and undermines social wellbeing. The Grattan Institute thinktank recommends reducing the discount to 25%, a move that could raise $6.5 billion annually for budget repair or increased rent assistance.
However, not all agree. The conservative Centre for Independent Studies argued the current system is "simple and well understood" and sees no strong case for change.
Political Pressure and Historical Context
The debate places internal pressure on the Labor government. While the opposition under Bill Shorten proposed similar changes in 2016 and 2019, Prime Minister Anthony Albanese's government has consistently rebuffed revisiting them, focusing instead on supply-side solutions. Despite Treasury modelling changes in 2024, the government did not act before the last election.
The AMWU's stance is more radical than that of the Australian Council of Trade Unions (ACTU), which suggested limiting breaks to one property. The Greens' election policy also advocated for a one-property limit. This internal pressure is expected to surface at Labor's national conference in Adelaide this July.
The Senate inquiry, examining the John Howard-era tax discount, is due to deliver its findings on 17 March.
