Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Hansard source

Under the shadow minister's policy, somebody on a wage of a quarter of million dollars who had net rental losses of $50,000 but also had $50,000 worth of, for example, unfranked share dividends, could offset that net rental loss against his or her share income, against their investment income. They would be able to do that. But a middle-income family with a net rental loss of only $10,000 would not be able to deduct those losses against an income of $90,000 in salary and wages. So that is Labor.

What the Labor Party's policy is designed to do is to allow negative gearing to be available to that very small number of Australians who have substantial investment income, very wealthy Australians. They will be able to use negative gearing but people on wages and salaries and middle incomes will be excluded. It may be that was their intention. It may be that they were setting out to disadvantage the very people they claim to represent or it may be that, as is always the case, they did not think this through. They did not understand the consequences of what they were proposing. As their policy is examined, pieces start to fall off and it underlines the fact you cannot trust Labor with the economy.

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