Major tax reform 'can't wait till next election': Allegra Spender

Independent member for Wentworth, Allegra Spender, has warned the Albanese government not to waste "a once-in-a-lifetime opportunity to make meaningful reform to the tax system" following the release of her tax white paper.

Spender released her tax white paper on Wednesday, which outlined her comprehensive plan to overhaul Australia's tax system.

The proposal seeks to rebalance the personal income tax system by reducing taxes on wages and salaries while cutting tax concessions on asset earnings.

The reduction in income taxes for wages and salaries would be funded by reducing the capital gains tax discount, changes to negative gearing, setting a minimum tax rate for investment income and making changes to superannuation taxes.

Speaking at the National Press Club on Wednesday, Spender said she respected the fact that the Treasurer had put tax reform on the agenda, but stressed the importance of the government embarking on bold tax reform rather than piecemeal changes.

"This upcoming budget is really important from a taxation point of view. It's incredibly important from a productivity and a spending point of view also," Spender said.

"The government has genuine pathways to deliver significant reform to the country that will help Australians and create an economy and community that is better off. So they shouldn't waste this opportunity."

Spender said younger Australians would not be willing to wait around for another two years for election promises regarding tax reform.

"They want action now because [their circumstances] are difficult right now," she said.

"When you're not dealing with the issues that are front and centre for people in their daily lives, that's when people lose trust in politicians. That's why I'm saying that there are issues facing people right now that need to be dealt with now with courage and bold action."

Spender's call for ambitious tax reform in the upcoming budget echoes similar demands made by the Greens, who have encouraged the government to make major changes to capital gains tax and negative gearing in the next budget.

Greens spokesperson for finance, housing and homelessness, Senator Barbara Pocock, said the next budget was a huge opportunity for the government to deliver bold, ambitious tax reform that puts renters and home buyers first.

The Greens want the government to make significant tax reforms in relation to both the capital gains tax discount and negative gearing.

“Unfair tax discounts just make housing more expensive and give billions to super-wealthy property investors. Ending these tax concessions will help more people have a roof over their head," Pocock said.

“Massive tax breaks for wealthy property investors are cooking our housing system. Negative gearing and the capital gains tax discount let cashed-up investors outbid everyday Australians — and young people and first-home buyers are the ones paying the price."