Tax expert worried Australia on path to neo-feudal society as housing wealth drives inequality

ANU tax expert has issued a stark warning that Australia is on a path toward becoming a neo-feudal society as housing wealth increasingly drives inequality between generations and socioeconomic groups. Speaking in Canberra on February 24, 2026, the academic emphasized that the real divide in Australian society is not between young and old but between those who possess assets, particularly property, and those who do not within the same generation. This growing wealth gap threatens to create a rigid class structure reminiscent of feudal systems of the past, where property ownership determines social status and economic opportunity. The expert highlighted how soaring property prices over recent decades have created a situation where homeownership is increasingly unattainable for many Australians, particularly younger generations, while those who already own property continue to accumulate wealth through capital appreciation. This trend is exacerbated by tax policies that favor property investors over other forms of investment and income, further entrenching the wealth divide. The academic called for comprehensive tax reform to address the imbalance, including considering changes to negative gearing, capital gains tax discounts, and land taxes. Without intervention, Australia risks developing a society where wealth is increasingly concentrated among property owners, creating a hereditary class system that contradicts the nation's egalitarian values. The warning comes as housing affordability continues to deteriorate in major Australian cities, with median house prices in Sydney and Melbourne now exceeding ten times average incomes, making homeownership a distant dream for many first-time buyers.