Experts back death tax in Australia, critics oppose plan

Australia is preparing to reintroduce the “death tax,” also known as inheritance tax, which was abolished in 1979. The idea has sparked debate across the country.

Supporters of the tax, including economists and policy experts, argue that it would help reduce the growing wealth gap in Australia. They believe that without such measures, rich families will continue to pass down large fortunes while others struggle, making inequality worse. They also say that the new law could provide billions in revenue to fund public services such as healthcare, education, and housing.

Critics, however, warn that the death tax would unfairly target families, especially those who inherit small businesses, farms, or property. They fear it could force some families to sell their assets just to pay the tax. Business groups and conservative politicians are already pushing back against the proposal, calling it “unfair” and “bad for investment.”

According to the Australia Institute, if the tax is reintroduced, the government could raise around 10 billion dollars. Some experts suggest a higher property wealth tax for the richest Australians, such as a 2 percent annual tax on people with assets worth more than 50 million dollars, which could bring in 41 billion dollars each year.

The proposal is also seen as a way to address intergenerational inequality. Since wealth is passed from one generation to another, advocates say taxing it would ensure a fairer system where the rich contribute more to society.

The discussion comes at a time when many Australians are struggling with rising living costs, high housing prices, and stagnant wages, while the wealth of the richest households continues to grow.

The government has not yet officially announced whether it will move forward with the death tax, but debates are expected to intensify in the coming months.