If the Albanese government shifts the tax burden from Gen Z to Boomers, these 4 ASX stocks could win and these 4 could lose

It seems the Albanese government is keen for Boomers to shoulder more of the tax burden than they are right now, and for younger generations to pay less. Don’t take our word for it – last week’s Productivity Summit saw an entire day dedicated to discussion of the tax system and it was a consensus that younger, working-age people shoulder too much of the burden.

Australians over the age of 60 enjoy a post-tax income similar to mid-career working-age Australians and much higher than Australians aged 18-30. Bracket creep is a form of tax increases by stealth. Moreover, the absence or restricted nature of taxes on income generated from forms of income other than work, particularly forms that retirees rely on (like capital gains and superannuation), adds to the growing divide between the have and have nots.

What exactly will be done remains to be seen, but it seems all but certain something will give. Boomers will need to pay more tax, with Gen Z potentially paying less. If that happens, here are some potential winners and losers.

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4 Stocks that Could Win from a Shifted Tax Burden

Universal Store (ASX:UNI)

Universal Store is a Gen Z-focused fashion chain with over 100 stores. It has done surprisingly well in the last couple of years, even with its customer base bearing the brunt of inflation. In FY25, Universal made $333.5m revenue (up 15.5%), $54.6m underlying EBIT (up 16%) and a $34.8m underlying profit (up 15.2%). Despite Gen Z consumers having less money, they are willing to spend on fashion for major occasions. In 2025, they received a boost from the revised Stage 3 tax cuts and are getting a further boost in FY26 with cuts to the HECS repayment thresholds.

Jb Hi-Fi (ASX:JBH)

Younger generations have just never known a world without technology, so they know the importance of having it and staying up to date. This is to the benefit of Australia’s largest electronics retailer. In FY25, its sales rose 10% to surpass $10bn and its profit was $462m, up 8%. This company also owns white good appliance outlet the Good Guys, which could stand to benefit as Gen Z consumers set up homes and families of their own – their homes will need the appliances they sell.

Australian Ethical (ASX:AEF)

There’s a reputation that Gen Z consumers are more ‘woke’ or ethical – at least female are. And this fund manager is benefiting from continued inflows – it has over $13bn FUM, up from $1bn a decade ago. People have to have super funds and they want their money to ‘do good’ beyond just making returns. They’ve turned to Australian Ethical due to its reputation as a leader in the ESG funds management space as well as its spectacular long-term track record.

Guzman y Gomez (ASX:GMZ)

The fast food space is intensely competitive and low-margin. But even though Guzman y Gomez isn’t doing well amongst investors, it is innovating to resonate with Gen Z and Millennials. These include affordable, “fresh is clean” offerings like mini burritos and $3 tacos; not to mention a loyalty program; setting up shops in convenient locations and being open for breakfast (which not all outlets are). Despite some skepticism about its high-growth ambitions, we think it is a compelling youth‑oriented play.

4 Stocks that Could Lose from a Shifted Tax Burden

Beacon Lighting (ASX:BLX)

Beacon Lighting sells lights and fans to retail and trade consumers and is the largest company in its industry. Now, this company could be a winner if Generation Z and Millennials up their spending on renovations. But they are less likely to have investment properties where the spending of such money would be tax deductible – if not upfront, then depreciable over time. So they’ll likely be spending less than Boomers would. Which is a shame because we like this company.

Then again, one thing that will help BLX’s cause is that it is broader trends in the lighting industry, like sustainability and energy efficiency which will resonate with these younger consumers.

Endeavour Group (ASX:EDV)

If Boomers have less money, they’ll spend less on alcohol. Meanwhile, Gen Z and Millennials just don’t drink alcohol. Various studies indicate a 20-33% decrease in consumption compared to older generations. Gen Z is more conscious of the health risks associated with alcohol and prioritises physical and mental well-being, including better sleep, gut health, and mood management. That’s not to say they don’t like socialising at nights, just that drinking is no longer seen as a necessary component of that.

Regis Healthcare (ASX:REG)

Aged care is high-cost and difficult to get in to, as proven by high occupancy rates. Regis prides itself on being a premium provider. But it may be difficult to get consumers to continue to pay a premium if it cannot provide it continues to deserve it, or if Boomers are willing to settle for slightly less if they have to pay more tax.

Lifestyle Communities (ASX:LIC)

We could’ve picked a few companies in LIC’s space – retirement homes. but we chose to go with LIC as it has a further headwind that its peers do not have. LIC operates on a land lease model, offering residents the opportunity to buy prefabricated homes while renting the land beneath them. For customers, this model has been appealing because they’d pay less upfront, freeing up cash for their lifestyles and potentially leaving some of the bill for their estate beneficiaries. One of the key revenue streams for LIC was the collection of “exit fees” when residents decided to leave.

But back in July, a VCAT ruling found that exit fee was unlawful due to inadequate disclosure to its consumers. This ruling disrupts a crucial part of its business model and raises the possibility of the company being forced to refund exit fees that have already been collected from former residents. It could also harm its reputation amongst prospective customers.