The Australian government is confronting major technology firms over their alleged failure to enforce age restrictions on social media platforms, while also preparing to address rising housing prices through potential tax reforms. Recent findings indicate that a significant number of children under 16 continue to access platforms like Instagram and TikTok despite a legal ban, raising concerns about online safety. Concurrently, an analysis reveals that tax policies have fueled property speculation, contributing to the ongoing housing affordability crisis.

Government's Stance on Social Media Compliance
Australia's online safety office has reported that two-thirds of under-16s with accounts on platforms such as Instagram, Snapchat, and TikTok have maintained access, despite a ban implemented in December 2022. A survey of 900 parents indicated that 31% of children still had social media accounts post-ban. Communications Minister Anika Wells criticized companies like Meta, TikTok, and Google for not adequately enforcing the age restrictions, stating that their current age verification methods are ineffective. The eSafety Commission is investigating these companies for potential violations of the new laws, which carry penalties of up to A$49.5 million.

Wells emphasized that tech companies must comply with Australian laws if they wish to operate in the country. She highlighted the need for stronger age verification measures, arguing that the existing methods are insufficient and allow minors to bypass restrictions easily. In response, Meta acknowledged the challenges of accurately determining age online but reiterated its commitment to comply with the ban.

Impact of Tax Policies on Housing Market
In a separate issue, an analysis from the e61 Institute has revealed that Australia’s capital gains tax discount and negative gearing rules have significantly driven property speculation, leading to inflated housing prices. Economist Nick Garvin noted that these tax incentives encourage landlords to borrow excessively against their properties, exacerbating the affordability crisis. The analysis indicated that 46,000 out of 900,000 investments were economically unprofitable but still yielded profits due to tax breaks.

Garvin pointed out that the current tax structure creates a disparity between the taxation of gains and the deductibility of losses. This imbalance has distorted investor behavior, leading to higher leverage and increased demand for housing, which has ultimately placed upward pressure on prices. The upcoming federal budget is expected to propose changes to these tax breaks to alleviate the burden on homebuyers.

Wrap-up
As the Australian government grapples with both the challenges of online safety for minors and the escalating housing affordability crisis, it is clear that significant reforms are needed. The confrontation with big tech firms over social media compliance highlights the ongoing struggle to protect children in a digital age, while the analysis of tax policies underscores the urgent need for a reassessment of the housing market dynamics. Both issues reflect broader societal concerns that require immediate and effective action.

Sources
theguardian.com
theguardian.com

@hoju-korean.com Editorial Team