BBC News World

Australia has some of the world’s costliest homes. Will scrapping tax breaks help?

Will scrapping tax breaks help? Will scrapping tax breaks help?11 hours agoTiffanie TurnbullandLana Lam,SydneyGettySebastian Munoz-Najar has only just finished primary school. The 13-year old is still a long way from learning to drive. He is not legally allowed to work. He cannot legally work. It’s sad to see that this issue is affecting how the current generation views Australia and how their lives should be. He told the BBC. Others say the rule changes unfairly threaten the wealth they’ve spent their lives toiling for.But many younger Australians like Sebastian argue the social contract that hard work is rewarded has long been broken anyway.They feel they have been denied the kinds of opportunities their parents enjoyed, and hope the changes will begin rebalancing the playing field and bring housing security back in reach for future generations.SuppliedA lucrative investmentAustralia has some of the least affordable cities on Earth. The average property now costs almost 10 times an ordinary household’s income, quadruple what it was about 25 years ago, and rents have doubled over a similar period.The simple fact is that Australia does not have enough homes for its growing population, which is driving unaffordability.Decades of inadequate investment in social housing, sluggish construction rates, and Australia’s restrictive planning laws – which limit homes being built where most people want to live – have taken a toll.But there have long been arguments that housing tax breaks are also increasing strain on the system.The main culprits are negative gearing, which allows owners of investment properties to detract any losses from their taxable income, and the capital gains tax (CGT) discount which means people selling an asset are only taxed on half their profits.Together, they have made housing a more lucrative investment, incentivising the buying and selling of homes for profit.Wages had roughly kept up with house prices until they were introduced around the start of the millennium. This was a turning point in both economic and social terms, analysts say.But these tax settings are staunchly defended by many homeowners – who are quite content to see house prices climb and their wealth grow – as well as investors and industry figures who say change threatens their profits and the essential role they perform in the market.Bearing the brunt of the crisis are young people: They tend to face the quandary of saving for larger and larger deposits while paying greater rents, before servicing longer mortgages with high repayments relative to their income – all often for smaller houses further from work.GettySebastian’s parents themselves quietly harboured concerns about their children’s futures, but were upset to find out this was weighing so heavily on his mind. “I was thinking about two things,” Ed, his father, tells the BBC. “The first is that you shouldn’t be worrying about it. You should be more concerned about your homework, your friends, and school. The second is that you don’t need to take it lying down. Together they put their anger into action by creating a website that outlined their calculations and launching a petition to change the CGT discount, and negative gearing. The petition has attracted thousands of signatures. Sebastian says, “We hope that this will remove the incentive for people to use houses as an investment and return them to being homes.” Labor proposed changes to CGT and negative gearing at successive elections in 2016, and 2019. It lost both elections, and many blamed its housing promises. But since 2019, the housing crisis has gotten worse, with its impact reaching higher up the class ladder. The demographics have also changed, with disenfranchised zillennials and millennials now making up a larger share of the voting base. Many of their parents are also seeing the crisis impact their loved ones for first time. Danielle Wood, the chair of the Productivity Commission (the government’s independent economic think tank), told the BBC that the situation was “like a slow-boiling frog”. It has been building up for over 20 years and has now reached a crisis point. “I think that these tax changes are symbolic of what has caused this problem. “Retired couple Cliff and Christine Hill dismiss the complaints of younger generation. Cliff, 64, says that they were able to afford their first house by moving out into the suburbs, saving money and not taking “expensive overseas vacations”. “You can’t complain that houses are $1m, because they’re not. He says that although they are $500,000 or $600,000. “Young people don’t want live 35km away from Melbourne,” he said. The couple owns their home in Hoppers Crossing in Melbourne’s west suburbs and has three investment properties. They sold a four-bedder they bought in 2010 for only $320,000 and sold it for $668,000. They say the tax reforms of Tuesday are a recipe disaster. “The government are going after the inter-generational gap that they keep talking about – and being a baby boomer, I’m really over that,” says Christine. “The government are going after the inter-generational gap that they keep talking about – and being a baby boomer, I’m really over that,” says Christine.SuppliedBut elsewhere Labor is seeing signs that public mood has changed enough for them to try again: one such hint perhaps being the backlash to Prime Minister Anthony Albanese’s purchase of a multi-million-dollar cliff-top home in 2024.In their first budget after a landmark election win – which comes as appetite for action on the housing crisis feeds minor parties – the government has promised to replace the CGT discount with a markdown in line with inflation, and limit negative gearing to new builds only. The government has promised to replace the CGT discount with a markdown in line with inflation and limit negative gearing to new builds only. The benefits of these policies will not be lost by those who have already benefited from them. The tax changes will likely lead to a slight dip in housing prices. By reducing investor demand, this will allow more room for first-time homebuyers and owner-occupiers. “[But] [they’re] not a panacea for house prices,” says Wood. The blame is increasingly being shifted towards migration, with both the Coalition opposition and the right-wing One Nation pushing for cuts to ease the demand. Wood says, “We need to make building easier and faster.” Construction regulations are essential for safety but there are so many approvals and processes to navigate, that build times have slowed down by about 40% over the past 15 years. He notes that many own investment properties and that the decision to grandfather in the change protects these people. “Young people feel let down… they are disappointed in policymakers who allowed this to happen. They also feel sad that the “Australian Dream” of owning a home is not achievable for them. “Australia’s looming election brings housing crisis into focusThe year the Australian Dream diedThe newest victims of Australia’s homelessness crisisHousingAustralia

BBC News World

Thousands of Waymo robotaxis recalled over risk of entering flooded roads

Waymo robotaxis are being recalled due to a risk of driving into flooded streets. This recall was made 20 minutes ago by Laura Cress, a technology reporter at Gado via Getty Images. The company is also temporarily suspending its San Antonio service following the incident. However, it has stated that it will resume the public rides once the necessary software fixes have been implemented. The BBC has contacted Waymo, which is owned by Alphabet, for comment. Its San Antonio service remains temporarily suspended following the incident, though the company said it will resume public rides after the necessary software fix has been rolled out. “That’s not to say that the technology will not be extremely beneficial,” he continued. “Policymakers would rather know about these things before they happen than discover them after the fact.” “Over the past year several incidents with different driverless car firms have raised concerns over robotaxi safety.In December 2025, a large power outage in San Francisco led Waymo taxis to stop working around the city, causing significant disruption.And in April, a mass Apollo Go robotaxi outage in the Chinese city of Wuhan caused at least a hundred self-driving cars to stop mid-traffic.Driverless taxi firm sorry for early-morning noiseAI teachers and cybernetics – what could the world look like in 2050?Tesla investigated over self-driving cars on wrong side of roadSign up for our Tech Decoded newsletter to follow the world’s top tech stories and trends. Sign up for our Tech Decoded newsletter to keep up with the latest tech news and trends. Sign up here.United StatesAlphabetDriverless carsGoogle

BBC News World

EU needs to delay social media access for children – von der Leyen

EU needs to delay access to social media for children – von der Leyen25 Minutes agoKristina VolksAFPEuropean Commissioner Ursula von der Leyen proposed a “social media delay” for children in Europe, and said that new legislation could be introduced in months. She told an EU summit at Copenhagen that an expert group was due to present steps on how to best protect minors online in July. She said that the discussion on a minimum social media age could no longer be ignored. The Danish government, which hosted the summit on Tuesday, and nine other EU countries, including France, have proposed different minimum age limits to access platforms. Australia was the first country to ban under-16s in December last year, and European countries plan to follow suit. In the UK, there are plans to implement strict social media regulations for under-16s. This includes potential bans, content restrictions and age verification. The major national consultation will close on 26th May 2026. France is pushing for a ban on social media for children under 15 years old, with a goal of implementation by September this coming year. In Spain, there are plans for a ban on social media for under-16s to combat addiction, pornography and harmful content. The plan includes age-verification technologies. Plans are being developed by the German government to focus on a possible ban for children under 14 with restrictions for teens up to 16. The key measures include age verification, creating a “safe” youth version, and removing addictive algorithm. Norway plans to introduce a social media ban by the end 2026. The legislation will require that technology companies implement age verification systems. New Zealand, Malaysia, and India have also proposed social media restrictions for children. “The question isn’t whether young people should be able to access social media.” She said, “The question is whether young people should have access to social media”. Let’s give childhood to children. The Commission found that Meta Instagram and Facebook violated the act by failing to keep children under 13 off their platforms. In February, the EU threatened to impose heavy fines on Chinese owned TikTok for its “addictive” design. The Trump administration in the US has heavily criticized the EU’s efforts to crackdown on social media companies. The US accused the Commission, after Elon Musk’s platform X received a fine in December, of attacking and censoring US companies. Several prominent Europeans were then barred entry to the US, including former EU commissioner Thierry Breton. US Secretary of State Marco Rubio claimed that “ideologues” in Europe had tried to force American platforms into punishing American viewpoints that they opposed. Von der Leyen stated on Tuesday that the EU has “set rules”. It’s the law and those who break will be held accountable. The UK will trial social media bans on teenagers. Is Australia’s ban on social media working?

BBC News World

Trump says Iran ceasefire is on ‘massive life support’

Trump says Iran ceasefire on’massive support’9 hours agoElla KIPLINGElla KiplingUS president Donald Trump said that the month-long truce between the US and Iran was on “massive support”. He told reporters on Monday in the Oval Office that the ceasefire remained, but it was “unbelievably fragile”. Following Trump’s remarks, Iranian parliamentary Speaker Mohammad Ghalibaf posted on X that Iran’s armed forces are “ready “Iran sent a counter-offer to the US on the weekend, outlining its demands to end war and reopen Strait of Hormuz. After Trump’s comments that Iran’s armed force was ready to respond, Ghalibaf stated in a separate X post that there is “no other alternative than to accept the rights the Iranian people have laid out in the fourteen-point proposal”. Ghalibaf said in a separate post on X that there was “no alternative but to accept the rights of the Iranian people as laid out in the 14-point proposal”. After his comments saying Iran’s armed forces were ready to respond, Ghalibaf said on a separate post on X that there was “no alternative but to accept the rights of the Iranian people as laid out in the 14 point proposal”. I don’t accept it. Baghaei responded to Trump’s remarks by saying that Iran would “act in any way necessary to protect our interests”. Speaking in the Oval Office on Monday evening, Trump addressed the ceasefire which has been largely observed between the two nations despite occasional fire exchanges. “The US President said Iran’s leadership were “very dishonourable” people, adding: “Look I’ve dealt with them four or even five times – and they change their minds.” “That piece of garbage that they sent us, I didn’t finish reading it,” said Trump.Trump also charged Iran with breaking an agreement to allow US to remove their supply of enriched Uranium. He insisted that Iran “would never have a nuclear weapons”.Iran’s Tasnim News Agency quoted a source from the negotiating team who said: “There is nothing in Iran’s proposals which accepts taking out enriched material.” Netanyahu, the Israeli Prime Minister, said that Iran must “take out” its stockpiles of enriched uranium before the war is considered over. Trump had repeated earlier this week that the war with Iran would be “over soon”. Netanyahu said that there are still enrichment sites to be demolished in an interview with CBS’s 60 Minutes. The US news outlet Axios reported the initial one-page US memorandum, which included 14 points, including a suspension of Iranian nuclear enrichment and the lifting of sanctions. It also cited two unnamed US officials and other sources who were briefed on these issues. The sources said that many of these terms would be contingent upon a final agreement. Iran has continued to blockade the Strait of Hormuz causing a rise in oil prices. The strait is normally the route of 20% of the world’s crude oil and liquefied gas. The US has imposed a blockade on Iranian ports in order to pressure Tehran into accepting its terms. This has angered Iran. Israeli and US forces launched massive air strikes against Iran on 28th February. The ceasefire in the Iran War came into effect last week. Trump calls Iran’s response to US proposal for ending war ‘totally unacceptable’ Oil prices rise after Trump dismisses Iran’s proposal to end the warMiddle EasternIranDonald TrumpIran US relationsIran war

BBC News World

US and French nationals test positive for hantavirus after leaving ship

US and French Nationals Test Negative for Hantavirus after Leaving Ship1 Hour AgoJaroslav LukivReutersAn American and a French national who returned home from a cruise ship where three passengers, a Dutch woman and two Germans, died. US Department of Health and Human Services said early Monday morning that all 17 US passengers on the flight will “undergo a clinical assessment” in a Nebraska medical facility. Seven US citizens are already back in their states of residence and being monitored. The 17 American passengers were evacuated along with a British citizen who lives in the US. The acting director of US Centers for Disease Control is Dr Jay Bhattacharya. He did not want to create panic, and said that human-to-human transmission was rare. The virus is spreading. Two other British citizens have been diagnosed and are receiving treatment in South Africa and Netherlands. Spain has imposed mandatory quarantine on 14 Spanish nationals who flew to Madrid. On Monday afternoon, two more evacuation flights are scheduled. On Sunday, a separate flight with 26 passengers, crew and eight Dutch nationals arrived in the Netherlands. Six passengers are flying back to Australia, while 18 more will fly to The two planes will take passengers from countries who did not send repatriation flights. Ukraine stated that four of its citizens would remain aboard the MV Hondius in order to ensure that the ship is transferred to. The Foreign Ministry said they would be quarantined upon arrival at a medical facility. A second Ukrainian was to leave the ship in order to participate in the partial evacuation of crew to the Netherlands. The symptoms had been present for some time, but no tests have been performed. His wife, who was 69 years old, flew from St Helena to South Africa. A German woman had died on a cruise ship back in May. She died two days later in a Johannesburg hospital. Both women have confirmed cases. The MV Hondius, which left Argentina’s southern town of Ushuaia back in April, is now docked at Grandilla in southern Tenerife.