Independent MP Allegra Spender’s path to politics is deeply influenced by her family. Her dad was a Liberal MP and her mum, a resilient entrepreneur, immigrated to Australia, started a fashion business and raised three kids while championing Financial Independence .

"She wanted us to understand how hard it was to run a business, and she wanted us to actually learn about money and learn about business, really early on," Allegra recalls.

From a young age, Allegra saw firsthand the risks of overextending financially. Her mum nearly lost everything when the property market turned . This taught her that assets don’t always go up and that, especially in small business, "Cash flow is king. If they can't get the cash in the door, they're not going to be able to survive."

A varied career with big lessons

Allegra’s career has taken her all over the world. She started in consulting, worked at the UK Treasury, spent time at a not-for-profit in Kenya, helped manage a hospital, ran her family’s fashion brand, and led an education charity. The common thread? Learning how to manage money , people, and change.

Despite her success, she says entering politics was the hardest decision of her life.

"The worst that can happen is that I fail and fail publicly as a public humiliation. But that’s the worst that can happen… it’s important. It’s worth doing."

What drives her in politics

Since becoming MP for Wentworth, Allegra has found joy in both big wins and small, personal victories. Whether she’s helping a soldier receive fair parental leave or supporting a refugee stuck in detention, the impact is real.

"Sometimes it is the individuals who help that give you the greatest satisfaction, as well as the big policy pieces," she says.

What’s broken with the tax system

Allegra believes Australia’s tax system unfairly burdens young workers. "Young people are struggling to get ahead the way that their parents did," she says. She hears from constituents who feel stuck. Even with good jobs, they’re unable to buy homes or plan for the future.

Three big concerns stand out for her: helping young people, supporting business growth, and funding the climate transition. All of these, she argues, are deeply connected to how we tax.

"Let’s make sure we use all the tools for it," she insists. But according to Spender, the problem is: "The major parties just don't want to talk about tax because they use it so badly as weapons against each other."

Too much pressure on workers

"If we keep on focusing our tax system around income, that means for a lot of people, we’re just putting a lot of weight on workers, and particularly young workers," says Allegra.

She points out the gap between generations.

"From 2004 to 2016, the wealth of households over the age of 65 grew by about 50%," she says. "But the wealth of households under the age of 35 basically didn’t move."

The sneaky tax hike: bracket creep

One issue most people don’t notice is bracket creep. This happens when your income rises slightly, just enough to match inflation , but you end up paying more tax because a portion of your earnings now falls into a higher tax bracket. Even though your buying power hasn’t really improved, you take home less money.

"If you're earning around $60,000 a year and it's 2.5% inflation, 2.5% increase… the difference is around $300 [in extra tax]," says Spender.

This can leave many workers confused and frustrated, feeling like they're working harder or doing better, but not seeing the rewards. Allegra notes that in countries like the US and Canada, tax brackets automatically move with inflation, helping people keep more of their earnings over time.

Helping businesses do better

Another tax priority? Supporting innovation and productivity. "How do we incentivise companies to invest?" Allegra asks.

Business investment outside mining is low. Australia also has far less venture capital than places like the US and the UK.

"We have about… a third of the venture capital… compared to the US in about half the UK per capita," she says.

She suggests tapping into superannuation funds to support early-stage startups, arguing that Australia's super industry holds enormous potential to fuel innovation.

At the moment, only a small portion of super is directed toward venture capital or new businesses. Spender believes allocating a slightly larger share of that pool to support high-growth, early-stage companies could boost productivity, keep talent onshore, and help diversify the economy beyond mining and property.

What about using super to buy a home?

Allegra is critical of the Liberal plan to let young people dip into their super for a home deposit .

"It will help some people… but it’s not going to fundamentally solve the problem that we’ve got," she says.

The bigger issue is housing supply.

"We have around 400 homes per 1,000 population. Somewhere like France has got like 600 homes per 1,000… and it is much cheaper to buy a house in France."

She also warns that grants and other incentives often backfire. "Everybody used that to bid against each other, which actually meant that nobody got real benefit from it."

Swapping stamp duty for land tax

Allegra is all for scrapping stamp duty . "Stamp duty is a tax on moving," she says. It penalises people who want to move, whether to downsize, upsize, or relocate.

She supports the NSW model where buyers can choose to pay land tax instead. "That’s bigger than the estimated impact from removing negative gearing ," she says.

Research shows that getting rid of stamp duty could boost home ownership by 7%.

Climate, rentals and energy upgrades

Spender also connects tax policy with climate goals. Renters and people in apartments often can’t install solar panels or make energy upgrades.

Her proposal? Incentives for landlords to upgrade appliances and install solar, and more funding for social housing energy improvements.

"We’ve actually made some progress in this term on this," she says.

Why nuclear isn’t the answer

While some push for nuclear energy, Allegra says it’s too slow and expensive to help with the urgent energy transition. "Nuclear is not an option in the next ten years," she says. Most coal power stations are shutting down during that time.

With solar being much more effective in Australia than in Europe or Japan, she says the answer is clear: invest in renewables, batteries, and a smart grid.

If she could change one thing…

Without hesitation, Allegra says tax.

"On climate, we are on the right track. The job is to keep going and go a bit faster. But on tax, I think it is hard. I think we’re really in danger if we don’t actually fix things for young people."

For her, fixing the tax system is about fairness and giving everyone a fair shot at building a good life.

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