More young people are abandoning hopes of home ownership amid increasing generational inequality, according to a new report. Source: ABC News.
Anglicare’s Falling Behind report, released yesterday, found home ownership among 25-34 year olds has fallen to an 80-year low – highlighting intergenerational inequality from tax settings that favoured housing investment.
Young Australians are facing a future where working hard does not guarantee security, Anglicare Australia executive director Kasy Chambers said after the report’s release.
“The economic foundations underneath them have shifted,” she said.
Ms Chambers said there was a perfect storm that led to inequality between the generations, with young people entering a workforce that is more insecure, an increased cost of living and more time needed to save for a house deposit.
Anglicare’s report found older Australians “appear insulated” from today’s economic pressures, having earned wages during a stable period in the job market and amassed wealth from investments which are taxed less severely than wages.
The report found that while older Australians’ wealth has significantly increased over time, their share of income tax has not.
It said young people are “absorbing the impact” with lower wages proportional to house prices and cost of living – affording less opportunity to amass wealth.
Ms Chambers welcomed the Albanese Government’s efforts to remove tax breaks for investment income, but said more measures were needed to even the playing field.
The Anglicare head also called for a shake-up to the Youth Allowance payment, citing the report’s findings that young Australians are eligible for less support from Centrelink despite facing the same costs as older people.
The report also highlighted that a single person on JobSeeker falls behind by $251 a week after paying for rent, food and transport – while a single parent on parenting payment falls behind by $174 a week and a couple with two children on JobSeeker falls behind by $428 a week.
FULL STORY
Young Australians first to fall behind on home ownership, report shows (ABC News)
