Monday, 29 February 2016
Questions without Notice
I thank the honourable member for asking me about negative gearing. The Labor Party's policy on negative gearing and its proposal to increase capital gains tax by 50 per cent is an ill-considered, reckless effort to undermine Australia's transition to the new economy. At a time when we need investment, surely all honourable members believe that Australia needs more investment. Surely we all believe that we want Australians to take risks, to invest, to have a go, to start new businesses. Surely we want young people to be able to borrow some money, realise their dream, start a business and do so, naturally, in the hope of gain. We would all hope that that is what they would do, and yet the Labor Party is saying that if they get into government they will increase the tax on any gain that young person makes by 50 per cent.
If you increase the tax on something, you discourage it. If you increase the tax on investment, you discourage people making those investments. What Labor is proposing is absolutely calculated to undermine our transition to the new economy. We have had a massive mining construction boom. China grew. China had a massive stimulus. Demand for iron ore and coal soared upwards, and we responded. Tens of billions of dollars were invested here, and we benefited from that. But that investment has been made. We are now in the production phase. Prices have come down. How do we maintain our prosperity? We do so through innovation, open markets and investing in infrastructure, and, above all, we need Australians to back their passions and dreams and to invest. And right at that point, while the government is encouraging investment and incentivising investment, what the Labor Party is doing is increasing the tax on investment by 50 per cent. Labor is whacking up higher taxes to discourage the very thing Australia needs more of to be successful.
There is a way to the future opportunities that we deserve in this, the most exciting times in human history. Labor is standing in the way, imposing taxes which will discourage the investment, entrepreneurship, technology and innovation that Australians need to succeed in these times.