ADJOURNMENT

Ms SHARKIE (Mayo) (19:30): When sweeping changes are made to our tax system, those changes should be taken to the Australian people, prosecuted in an election or, at the very least, have the start date held off until the next election. This has not happened in relation to the government's proposed changes to capital gains tax that will affect housing shares, crypto, discretionary trusts and testamentary trusts, and those trusts are often created to protect vulnerable people.

The government is making risky decisions considering the overall economy, especially with respect to housing. There is not an Australian homeowner that doesn't want their children or their grandchildren to realise the Australian dream of homeownership. The proposed changes to capital gains tax will not make that dream a reality for young Australians.

It's just a blatant tax grab and a double tax grab at that. The budget papers predict rents will increase and 35,000 fewer homes will be built. The government argues more Australians have invested in real estate in previous decades than in the stock market, and they want to flip that.

So why make CGT changes that make it less attractive to invest in shares? If it's about housing, why capture bitcoin and crypto? In reality, the changes to CGT and negative gearing are about increasing tax revenue not about getting young people into housing.

Already the budget has increased instability in the housing market. Many banks have reduced purchaser borrowing power, and auction clearance rates have fallen off a cliff. Who do I worry about the most with this whole ill-conceived and rushed tax-grab policy?

It's actually young people—two groups of young people in particular. First are those that were captured by the government's financially irresponsible five per cent deposit scheme that I see as a subprime scheme, as do many economists. With rising interest rates trying to curb inflation, they will face mortgage stress and owing more than their property is worth.

Many will likely be in negative equity. Property analytics firm Cotality stated, 'The government's Home Guarantee Scheme fuelled a surge in entry-level home prices, up an average of 6.7 per cent in just six months.' Treasury, at the time, forecasted a 0.6 per cent rise in the medium term. Wrong again, Treasury.

If they default, it's the taxpayers who pick up the bill for the shortfall, and there are over 50,000 of those five per cent first home buyers that are using that scheme that are not even Australians. It's shocking. Yet, for HECS, we ensure that people who apply for HECS have to be Australian citizens.

The other group of young people who I believe will be detrimentally affected are those who invested in shares and crypto to save a deposit. According to ASIC Moneysmartgen Z financial behaviours report2026, nearly one in four Australians that are aged 18 to 28 have crypto assets, and almost one in five own shares. Hans in my electorate tells me that his son has been diligently saving with bitcoin for five years and has just got enough together for a house deposit, and he's now set back two years.

Aaron says that he and his family rent and that they've been investing in high-growth assets to save for a deposit. He believes the new CGT rules will be a disaster for his family. In Mayo, many live on non-income-earning acreage.

They will be paying more tax. For those with a pre-1985 acreage asset which was previously grandfathered from CGT, it will be so no longer. Let's talk about trusts—common small-business structures used for asset protection, flexibility and succession planning.

COSBOA said this is going to increase complexity and compliance costs and cause uncertainty. It's the last thing small business needs. Testamentary trusts—no matter how the government tries to spin it, this is a death tax.

What's left in a testamentary trust has already been taxed. The government is waiving a $250 offset as a distraction that's two years away and 68c a day. That's going to be lost in bracket creep.

And, as for the $1,000 instant deduction, that's no gift—60 per cent of taxpayers make more than $1,000 in expense deductions. The government should be upfront with voters. If you're convinced about this, implementation should be delayed until 1 July 2028.

Take this to the election. Let the Australian voters decide if they want these changes.