Budget 2026: are younger Australians carrying the load while having the wool pulled over their eyes?

JAMIE HYNDMAN

Director, Tribe Financial

The latest federal budget has landed, and while there’s been plenty of talk about cost-of-living relief, housing and tax reform continue to dominate conversations around kitchen tables and business lunches alike.

For many Australians, especially younger families and business owners, this budget feels like another reminder that the economic playing field has shifted significantly over the past 25 years.

Capital Gains Tax

The first major talking point is the proposed changes to Capital Gains Tax (CGT). While aimed at improving affordability and easing inflation pressures, many younger Australians should feel they are carrying a heavier share of the burden.

Those who built wealth during decades of rising property values, lower entry prices and favourable lending conditions are largely unaffected and left to spend their wealth without consequence.

Meanwhile, younger households are managing much larger mortgages, higher living costs and ongoing interest rate pressure.

There’s a growing feeling among many under 45 that they are being asked to absorb the pain of inflation control through higher borrowing costs, while previous generations remain relatively protected.

Whether fair or not, that sentiment is becoming harder to ignore.

Negative Gearing changes

The second key area is the ongoing discussion around negative gearing changes.

This has been on the political agenda for years, and while opinions vary nationally, regionally it could create opportunity.

In areas like Greater Geelong, encouraging investment into housing has the potential to stimulate construction activity, create jobs and increase housing supply.

That can benefit not only investors, but also local trades, small businesses and the wider economy.

The challenge, as always, is finding balance. Policies need to encourage investment without pushing housing even further out of reach for everyday Australians.

Finally, this budget feels very much aligned with traditional Labor priorities. There’s a clear focus on everyday Australians, healthcare, wages and cost-of-living support.

However, some larger structural questions remain largely untouched, particularly around how Australia generates and retains long-term revenue.

Resources sector remains untouched

One area regularly raised is the resources sector.

Australia continues to export enormous volumes of natural resources overseas, yet many Australians question whether enough of that wealth stays within the country to fund future infrastructure, housing and services.

It is fair to look at sovereign wealth funds of nations such as Norway, and to ask the question: where is our national wealth?

Budgets are never easy balancing acts. But for many Australians, especially younger generations trying to build wealth and security, the bigger question remains: are we creating an economy that gives future generations the same opportunities previous generations enjoyed?

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