Younger Australians Face a Difficult Road Ahead in Terms of Taxation

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Ken Henry, the former Australian Treasury Secretary, highlighted how the tax system and economy had been structured in a way that has placed an unfair burden on younger Australians. 

He called out governments for failing to address this inequality, urging them to take action. His comments spotlight intergenerational unfairness in Australia and have raised questions about the future relationship between young and old.

It was worth noting that Henry has previously criticised Australian policymakers for failing to keep up with the country’s changing economic landscape.

According to his 2010 review of Australia’s Future Tax System, he believes that our nation needed to adequately adjust its tax system during the China-driven mining boom of the 21st century.

Meanwhile, the Australian Bureau of Statistics analysis has revealed that millennials and younger groups will make up more than half of Australia’s population in 2021. However, when it comes to housing, these generations face far more significant difficulties than their predecessors did at the same stage.

“There can be no ignoring the extraordinary intergenerational inequity inherent in our present tax system,” Henry said.

According to Henry, younger Australians face a different tax system than older generations. He noted that this would mean more challenging times ahead for young people in Australia. 

“Whilst government spending is growing strongly, the share of government spending is directed to the non-working, low tax-paying, and aged is also growing.

“At the same time, and in stark contrast to the post-war period, because of population ageing, a shrinking proportion of the population, made up of relatively young workers, will have to shoulder a rapidly accelerating share of the burden of financing government,” he said.

The government must address these issues as soon as possible with meaningful reform that ensures fairness for all taxpayers and helps young Australians achieve financial security. 

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