ACTU Secretary Sally McManus calls for one property limit on negative gearing tax breaks
Sally McManus, the union's secretary, told ABC's Insiders the current arrangements should continue for five years but after that date "we've got to bite the bullet".
"Otherwise, we're just saying 'too bad young people, you're not going to be able to ever own a home'," she said.
"Since 2019, the problem has just got worse. It's going to continue to get worse unless the government is brave enough to do something about it."
Labor took negative gearing reforms from opposition to the 2016 and 2019 federal elections, at which they were defeated.
Ahead of this year's election it emerged that Treasurer Jim Chalmer had asked his department to model the impact of changes to negative gearing and capital gains tax concessions, but Prime Minister Anthony Albanese hosed down speculation Labor was planning to scale back the tax breaks.
Ms McManus did not divulge whether she believed the government, after its landslide victory earlier this year, would go for the proposal but stressed that the union would "go and argue it".
"In the end, the government will make their decisions based on what they think is in the national interest. We would say that it is in the national interest," she said.
The ACTU's proposal would raise about $1.5 billion in tax revenue each year, according to Ms McManus, who added that those with investment properties would have time to adjust their portfolios.
"Part of the problem is that we've been keeping a whole lot of capital in housing. And it's not those people's fault. They've done that because it has worked for them and they've made smart decisions around that," she said.
"But it's also meant that capital is not being invested in areas that are going to increase productivity, like Australian businesses and other ways that it can be invested."
Nearly half of all Australian landlords had negatively geared properties, according to figures released in December, that showed the highest earners are hauled in tens of billions of dollars from tax concessions and loopholes.
Mr Chalmers has signalled he will use the three-day roundtable to seek new economic reforms, prioritising "consensus" among unions, business and economists.
He has said he wants any reform proposals brought to the roundtable to be budget neutral or budget positive.
Earlier this week, the Productivity Commission released the first of several reports requested by Mr Chalmers in the lead-up to the roundtable, in which it called for a 20 per cent tax rate on profits for companies with revenue of up to $1 billion.
That would represent a significant cut for all but the largest companies from the current rate, which is 25 per cent for companies with turnover under $50 million and 30 per cent for all others.
It also called for a new 5 per cent tax on net cashflow rather than profits, which could see some large companies pay a higher rate but would provide immediate tax relief for smaller companies seeking to build their capital.
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