Grattan on a Friday: Politically, the baby boomers’ day is done

“Politically, it’s a very bad time to be a baby boomer.” Michelle Grattan argues the government – with its “ear cocked to public opinion” – hears growing resentment from young adults.

Politically, it’s a very bad time to be a baby boomer.

It is not just that intergenerational equity has become, rightly, a priority for Labor.

It’s also that this government, which always has an ear cocked to public opinion, is fully aware of the resentment towards boomers from many people aged 25–45 who see themselves paying for their elders while often unable to afford the housing that was more readily available to a “lucky” generation.

When on Wednesday Health Minister Mark Butler announced the government would scrap the top-up private health insurance subsidy for those over 65, brought in by John Howard, he cast the decision in generational equity terms.

The extra subsidy “means two households on the same income receive different levels of government support, based only on their age,” Butler said. “That’s not fair between generations.”

Removal of this (income-tested) benefit will save the government $3 billion over the forward estimates. With an ageing population putting an increasing burden on the budget, the government is repurposing this money into aged care, including paying the full cost of showering for those on home care packages. (So, the government might argue, there are swings and roundabouts for boomers.)

Treasurer Jim Chalmers will make intergenerational equity a major thread woven through his May 12 budget.

The politics says housing unaffordability remains red hot among voters. It is now accepted the capital gains discount will be hit; also, negative gearing is likely to be........

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