Has there ever been a federal election that so strongly illuminates the thorny issue of intergenerational inequality? This battle between the interests of wealthy older Australians and their younger less wealthy children and grandchildren is an emerging feature of the twenty first century, an intergenerational divide that infuses the politics of climate change, housing, tax, wages and superannuation. A key intergenerational battleground in this election is the debate over penalty rates. This election will determine whether the interests of older wealthy Australians continue to prevail over the generations that follow them.

Inequality is multi-faceted and the divide between young and old can be overstated. Not all baby boomers are wealthy; indeed, a significant number fall below the poverty line. A significant percentage of young employees have enjoyed above-average pay rises.  But as the Grattan Institute has observed: ‘Australians are becoming wealthier, but much of the increase is concentrated in the hands of older generations.’ That increase in intergenerational wealth inequality is largely attributable to housing and superannuation policy together with a labour market that is increasingly hostile to younger workers.