Australian Unions will pursue above-inflation wage rises this year because of rising housing costs.
Expenses including rent costs have risen by 4% in the past year on top of steep rises over the last five years. Both rent and mortgage payments for new homeowners are taking up a larger share of income.
Recent wage growth through union-negotiated collective agreements are the most successful means of achieving real wage growth. Australian Unions will also push for broader housing reforms to make housing affordable.
Unions want the tax system to change to address tax concessions that are effectively pricing workers out of housing. This includes scaling back capital gains tax discounts from 50% to 25% and limiting negative gearing concessions to one investment property with a phase in period.
Most government revenue comes from working people paying ordinary income tax, not from taxing the wealthy, corporations or levying rent on multi-nationals exporting Australia’s natural resources, said Australian Council of Trade Unions (ACTU) Secretary Sally McManus.
“The tax system must stop loading up wage earners and start taxing other forms of income more fairly to take pressure of working Australians. Workers feel strongly about housing affordability and the cost of living and are prepared to turn that pressure into collective action for better pay.”
