Albanese’s tax changes a bitter pill for long-term investors

For days now, correspondents have been declaring that the government’s broken promises over tax changes are justified and to be encouraged because circumstances have changed, and the changes make sense (Letters, May 14). I’ve seen no change in circumstances. House affordability has been a serious and well-debated issue for many years. In fact, prices are moderating at the moment and auction clearance rates are very low. There has been no change in circumstances since the election justifying a serious breach of Anthony Albanese’s promise “50 times” not to change negative gearing and CGT rules. The correspondents who defend politicians breaking promises and thus lying to the electorate are encouraging a further corruption of our democratic process. I have made decades-long investments in property, and my vote in the last election was partly based on Albo’s “50 promises”. Will I get a refund covering the changes? Richard Abram, Bexley

It was a promise that should never have been made, and it’s good news that Labor has finally grown the fortitude to break it. But some in the media are obsessing over “broken promises”, with references to “communism” and other nonsense. The bleating and shrieking from the Liberals and Nationals will go on, no doubt. Well, to answer them, put this into your search engine, “Lies told by John Howard while he was prime minister”. Ask the same about Tony Abbott, or search “Pre-election promises broken by Tony Abbott”. The litany of blatant lies and broken promises is breathtaking. It’s time to remind ourselves and the media of that. Peter Thompson, Grenfell

Let’s face it, nowadays the only way for politicians to tackle serious reform in this country is to break a promise. If you’re upfront about your intention and take it to an election, the other side will mount a massive scare campaign based largely on mis- and disinformation, and the bulk of the population will fall for it. Bill Shorten is being gracious and saying that in 2019 it’s time hadn’t come. In fact, it’s way overdue. It’s just taken this long for the government to gain a thrashing majority and grow a spine. Graham Meale, Boambee East

Hands up if you have ever changed your mind. I’ll go first. When circumstances change, if you don’t change your thinking, you are a fool. The people continually harping about broken promises are the selfish ones, those with no credible alternative ideas or the usual right-wing biased media. Long live the notion of a fair go. Ted Hemmens, Cromer

Those who wish to dismiss the government’s tax changes to housing as too little too late should lay the blame where it belongs, with shadow treasurer Tim Wilson, who orchestrated the unrelenting scare campaign against Bill Shorten’s reform platform in 2019. Arthur Cooper, Alstonville

Yes, conditions change and some promises cannot be delivered. However, some major fiscal changes could be flagged and grandfathered until the next election or until enough time is given to fully debate the issues both in the community and in parliament. At least leave the radical changes until the next budget. Let the voters be heard. Denis Suttling, Newport Beach

Level the playing field

Can we stop this malarky that the changes to negatively gearing a property is an attack on all Baby Boomers (Letters, May 14). Only 11 per cent of Boomers are landlords. The vast majority favour a tax system that allows their kids and grandkids to own a property. It’s beyond me how we can have a society that makes it easier for someone to own multiple properties at the expense of those merely wanting a roof over their head to raise a family, just like their parents did. Tony Nicod, Collaroy

In her article, Jaqueline Maley concludes that the treasurer “is gambling against self-interest” (“Is this the budget we need? Our experts deliver their verdicts”, May 13). I think it is a good bet, but it is not a bet against the dominance of self-interest but rather a bet on human nature – a bet that pioneering economist Adam Smith would surely have supported. Contrary to modern simple acolytes of Smith, who believe in the unfettered pursuit of self-interest, Smith understood it is constrained because we live in a shared society and have a concern for our fellow beings and that justice was an important pillar of a sustainable society. His book, Theory of Moral Sentiments, sets out in its first sentence the fundamental premise that a degree of altruism is embedded in our nature. This is no less true of Boomers today, many of whom share concerns about an increasingly unjust society that makes it more difficult for subsequent generations. I am old but still naive enough to believe that good policy can be good politics. Eric Groom, Manly

Ian Ferrier wants our MPs to be experienced business managers (Letters, May 13). In his groundbreaking work The Wealth of Nations (1776), Adam Smith begs to differ: “The government of an exclusive company of merchants is, perhaps, the worst of all governments for any country whatever.” Grant Arbuthnot, Picton

What a strange reality the conservative side of politics and their friends at the Murdoch media live in. They claim that Labor’s changes to negative gearing and the CGT have “destroyed” the future of aspirational young Australians (“Next tax war will be over rival income tax cuts”, May 14). Let’s look at the reality. After 40 years of these tax settings just 10 per cent of Australians have achieved this aspirational goal. Most others have either just one house or have to rent because they can’t compete against taxpayer-subsidised investors. Perhaps the Coalition may find relevance again if they tried to help young Australians with real help, rather than support the lucky few. Ross Hudson, Mount Martha (Vic)

For all those bemoaning Treasury’s forecast of a 2 per cent fall in house price growth for the next three years, spare a thought for first home buyers. In Newcastle, a growing phenomenon has been a surge in Sydney investors swooping on entry-level housing, subsequently pushing house prices out of range, particularly for young people. For example, in December 2025 a house listed in Mayfield for less than $1 million sold at auction for $1,220,000 to a Sydney investor couple. Making negative gearing possible in the future for only new dwellings will hopefully give first home buyers a greater chance. Levelling the playing field will surely be a good thing. Any doubters, please refer to Ross Gittins (“It pains me to say nice things about politicians, but this is a good budget”, May 13). Jane Rees, Newcastle

Ross Gittins’ compelling article evokes any one of three, let alone all, pertinent quotes: “It’s always the right time to do the right thing” (Martin Luther King), “The end justifies the means” and “The promise given was a necessity of the past; the word broken is a necessity of the present” (Machiavelli). Edward Loong, Milsons Point

As correspondent Susan Wilson points out, short-term rentals have greatly reduced the number of dwellings available for residential rental (Letters, May 13). To make matters worse, should an older person or couple wish to downsize it would often result in cash in the bank and subsequent disqualification for the aged pension. So they remain in an oversized, half-empty house to the detriment of both the housing market and the federal budget. With a bit of imagination this problem would not be difficult to fix. Peter Lane, Margaret River (WA)

Coalition scapegoats migrants

It is hardly surprising that Liberal leader Angus Taylor, in his desperate attempt to match the racist attitudes of his perceived enemy, One Nation, tries to pin all the problems of the economy, housing shortages and increasing house prices on immigration numbers (“Labor expects more migrants as Coalition, One Nation seeks big reduction in numbers”, May 14). He then doubles down with wanting to deny migrants with permanent residency access to the NDIS. Using immigration as a scapegoat, utilising nasty policies and as an excuse for previous governments’ failure to ensure adequate supply of new housing over the past 20 years, is disgraceful. I hope the migrant voters in key electorates respond accordingly and put the final nail in the Coalition’s coffin. Mark Berg, Caringbah South

Angus Taylor will set out to recover Coalition votes from a surging One Nation with policy to reduce migration and link numbers to construction of new houses. He could throw migrant voters a bone by preferencing family reunions within his smaller program, where new arrivals usually share existing homes. That attracts votes, enhances integration and reaps an economic benefit. Australian dollar remittance payments (particularly from former refugees and former students) which currently fly offshore in their millions, would be spent here, boosting our own economy. Frederika Steen, Chapel Hill

Angus, you can offer these “alternatives” in opposition, but it does look like you won’t be in the House, let alone in opposition, for long. Wolf Kempa, Lithgow

Political betrayal

Pauline Hanson is no mother duck. She displays authoritarian traits and sidesteps issues she does not want to address (“Pauline plays mother duck as she parades new recruit in Canberra”, May 13). The far right undermines democracy. She allows Barnaby Joyce to condemn our political system and her party accepts funding from MAGA supporters. One Nation attracts the votes of the alienated, but does not act for them. Anne Eagar, Epping

One Nation here I come

I have a confession. I get part dole. It’s embarrassing that I can’t get full-time work, but it’s mostly because I’m old. But that’s OK, I don’t need much. I’ve even supported my partner on a single dole and part-time work for four years. But Centrelink found out and wants $10,000 from me because I have a partner, even though she receives no benefits and has no money. Centrelink seems to think couples live more cheaply so it’s reasonable to pay them less. One Centrelink official I contacted used sharing toothpaste as an example – even though it gets used up twice as fast. We talked for over an hour – he did not think skipping medical care, having an old car or living in a caravan was financial difficulty. He said that was my choice. Today I’ll join One Nation.
Jakob Gamertsfelder, Morgan (SA)

Stamp out the excise

Chris Minns’ call for a tobacco excise overhaul is a no-brainer (“Minns calls for tobacco excise overhaul after $62 billion hole emerges”, May 14). The illegal tobacco industry can’t be controlled despite policing, and the die-hard smokers won’t quit their habit if they can get cheap smokes. So, if revenue from the excise is falling to an insignificant level (down 81 per cent in five years), why not just abandon it? The effect on the budget will be negligible, policing costs will cease, the illegal industry will have no legs and die-hard smokers can carry on in their own smelly world. Removing tobacco excise won’t encourage new smokers as cheap cigarettes are already available, plus society is far more aware of the deleterious effects of smoking. So, go hard for a change, Mr Minns. Please. Peter Singh, Dubbo

As the government faces a projected $77 billion shortfall in revenue from cigarette excise, Australian law enforcement authorities are consistent that we cannot arrest our way out of this situation. Cigarette excise will have to start being reduced to decrease the illegal trade to a level we are prepared to tolerate. It will never be eradicated. Ensuring that lower-risk nicotine vaping is more available than higher-risk cigarettes will accelerate the decline in the illegal tobacco trade. After a New Zealand Labour government in 2020 ensured that vapes were more available than cigarettes, the decline in Kiwi smoking rates accelerated, especially among low-income and Māori populations. New Zealand provides a good model for how Australia should approach vaping. Dr Alex Wodak, Darlinghurst

Yet another article about the surge of the tobacco wars, with the focus yet again being the loss of revenue for the NSW government. These articles are proof that this tax is nothing about health but purely about revenue. Not mentioned is the financial impact tobacco tax has on families that include smokers. It’s no wonder the community has moved to cheaper, if illegal, options. David Millington, Hornsby Heights

Going nowhere slowly

Gregory Blaxland, William Lawson and William Wentworth would be highly amused at our progress of road building over the Blue Mountains 213 years later (“Motorists face wait to find out fix for Great Western Highway”, May 13). Tony Hunt, Gordon

No ordinary Josephine

My use of the name “Josephine” wasn’t intended to besmirch anyone, but more to highlight that women can be just as misguided as any “ordinary Joe” (Letters, May 13). Rosemary O’Brien, Ashfield

Dump the Trump

Your headline suggests there’s a card game in Beijing (“When Trump and Xi meet, one will be holding the Joker”, May 14). In our day, we played a game called “five hundred”. The best potential outcome was via no Trumps. Bidding Open Misère, a total loser could win. Frank Canu, Lyons (ACT)

Poetic justice

In the words of the rock anthem-turned Coles jingle Down Down: “I have found you out you see, I know what you’re doing, what you’re doing to me” (“Coles’ discounts misled customers on industrial scale, court finds”, May 14). Allan Gibson, Cherrybrook

Brass in pocket

I feel for your correspondent who finds themselves at a loss to reward what sounds like a worthy busker (Letters, May 14). I don’t believe we’ll ever be, or ever wish to be, a truly cashless society. As an Aussie of Greek descent, I never leave home without a few Oxford scholars in my skyrocket. Nick Andrews, Bellevue Hill

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