Inequality and fiscal policy reform.
The 2026 budget is trying to change inequity in the Australian housing market. The Guardian explains the budget and how it is removing tax incentives for purchasing investment properties. This is an example of a fiscal policy that is trying to improve the standard of living for Australians.
ACARA Alignment: ACHEK052
Clip Length: 2:24minutes
Year: 2026
URL: https://youtube.com/shorts/xfrh4V54Xdc?si=2mwCDI0CWC7cZ2qS
Economics Concepts: Income redistribution, federal budget, taxation, supply and demand, shifting demand
- Introduce the topic – fiscal policy and income redistribution
- Show this Thomas Piketty (French Economist) clip The Colbert Report — Picketty – Economics Media Library (5:52 minutes)
- Then instigate a classroom discussion, inviting students to share what factors have influenced wealth inequality in the USA? Have students seen similar occurring in Australia?
- Show students this Productivity Commission graph. Ask them if this wealth distribution surprises them (From https://www.pc.gov.au/media-speeches/speeches/inequality-government-role/)
- Show the clip above on the housing market (https://youtube.com/shorts/xfrh4V54Xdc?si=2mwCDI0CWC7cZ2qS)
- Ask students how the housing market capital gains tax changes are designed to improve housing inequality? Will the government be successful or what other issues need to be addressed
- You may like to follow up with the “Australia’s housing supply and demand” clip to illustrate that it is not just migration but also new housing builds and the fact Australians are living longer all impacting the housing market.
- Draw a supply and demand graph showing a shift in housing demand with investors leaving the existing housing market
- Get students to complete this Wayground (Quizziz) activity to reinforce learning on income redistribution https://wayground.com/join?gc=16292841