Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

I thank the Prime Minister for the opportunity to respond in relation to negative gearing, because one of the key issues around negative gearing that those opposite have liked to raise is the issue of fairness. They think that somehow this is going to create some greater fairness. But I wonder if they have contemplated this scenario. They raise these issues in the context of fairness, but is it fair for, say, a part-time teacher in Fairfield in Western Sydney, in the member for McMahon's electorate, who wants to return to work in the second half of next year if they were to be successful at the next election, after she has had children? They go back and they buy an investment property, which would be denied under those opposite, to offset the net rental losses. They would have a salary of some $40,000 a year. Under the policy of those opposite, they would not be able to negatively gear that property they bought to secure the future of their family. That is what happens with an existing property under their policy.

But consider someone in the member for Sydney's electorate: a senior executive earning, say, $600,000 a year in a cash salary but, more importantly, pulling down some $75,000 in dividends—

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