Jim Chalmers

Appreciate it.

Huge emphasis in the budget on intergenerational concerns.

I think that

really one of the main motivations of what we're announcing tonight is to recognise that for too long, too many people, particularly young people, have been locked out of the housing market, that the interaction of the housing market and the tax system is effectively broken.

The status quo is not working because it provides tax breaks of a sufficient magnitude that it crowds out young people from getting a toehold in the housing market in particular.

Really some of our biggest motivations in this budget, particularly in the tax package, but more broadly is a sense of intergenerational fairness.

The tax reforms are driven really by trying to better align tax on people who work for a living versus people who get their income from other sources.

It's about getting an extra 75,000 owner occupiers into the housing market over the next 10 years, and it's about encouraging more innovation in our economy as well.

Really that's a long way of saying that we don't just acknowledge that there are genuine concerns about the generational unfairness in our budget, our tax system, our housing market, our economy more broadly, more than acknowledging that.

We're doing something about it and that invites an element of political risk.

There will be a lot of people who will go to the wall to defend the current arrangements, frankly.

a lot of defenders of the status quo.

But from our point of view, the reason we've come to this view that we're putting in the budget tonight, the policies that we're changing tonight in the budget is because we don't want to leave this challenge to go unattended to and to become even worse over time.

Well, a really important part of the negative gearing changes is to say if you're going to negatively gear, you've got to make a contribution to supply.

You know, we think that housing supply is still the main game when it comes to the housing problem.

But the challenge doesn't end with supply.

There's new investments in there around youth homelessness and also these big changes, or two big changes we're making

in the tax system.

And so the 75,000 extra owner occupies is the net effect of both negative gearing and capital gains.

And that's because we think that the composition of the market, too many people are getting crowded out.