During the Productivity Roundtable, the Albanese Government allowed a proposal to be discussed that many consider “monstrous.” The proposal involves forcing homeowners who have spare bedrooms to rent them out to new arrivals – or pay a tax if they don’t. The outcome appears to be that elderly Australians will vacate their homes and move into retirement facilities, thereby freeing up housing for others.
Young couples will also be a target. Those purchasing their first home with extra rooms intended for a family in the future may mean that they will be required to take in boarders or pay a tax—an added financial burden at a time when many are already stretched thin.
During Question Time, I asked Finance Minister Senator Gallagher to rule out this horrible idea. Unfortunately, she declined to do so.
As Margaret Thatcher once said, “Eventually, socialists run out of other people’s money.”
It seems the Albanese Government has taken that as a challenge.
Transcript
I move:
That the Senate take note of the answer given by the Minister for Finance to a question I asked today regarding taxation proposals raised at the productivity roundtable.
In public life, there are some ideas that are so monstrous they should never be raised. Last week, Treasurer Chalmers encouraged not one but two monstrous ideas for new taxation. The first is grave robbing. An Australian works their whole life, pays off their home and, on their death, their home is sold to help their children or grandchildren enter the housing market. Some use the money to pay off their HECS debt so they can afford some home repayments. Treasurer Chalmers now proposes we should tax the home and only give the children what’s left, forcing the children to sell the home to pay taxes levied. This is being dressed up as somehow helping the housing market. Instead it will take away the only chance many young Australians have of affording a home of their own.
Death duties were first introduced in Australia in 1851. In 1914 some states’ duties were as high as 54 per cent of the value of the property, before they were abolished after a public outcry and were never introduced again. Death taxes meant children could not afford to buy their parents’ farm and were forced off the land. The Prime Minister has met personally with the billionaires buying and controlling homes and farmland around the world—BlackRock’s Larry Fink, who is the new World Economic Forum co-chair, and vaccine king Bill Gates. Is this what they discussed—plundering our homes and farmland?
The other monstrous idea was taxing unused bedrooms. For this each person will need to report to government how many bedrooms are in their home and how many are occupied. That spare bedroom is often being kept for family to visit and stay a while, meaning this policy is designed the deliberately break the bonds of family. A tax on empty bedrooms is an attack on the elderly, and that will force people into retirement homes earlier, the reverse of what we accept as best policy. Will our elderly be forced to take new arrivals as boarders into their own homes to beat the tax—language, culture and religious differences be damned? Minister, rule these monstrous proposals out now.
Question agreed to.
