House debates

Monday, 29 February 2016

Questions without Notice

Taxation

2:39 pm

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

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.

Comments

Tibor Majlath
Posted on 1 Mar 2016 6:52 pm (Report this comment)

It is almost impossible not to hear a Coalition member mention Labor and its policies. You could be forgiven that the Coalition has no policies and spends all its energy talking about the Labor Party.

The Liberal Party's lop-sided "Our Plan" manifesto on its website has at least 8 items on infrastructure, the economy, jobs, and business. But only one item each on health, education, environment and immigration. Then there is that curious item in the plan entitled "stability" :-

"The Coalition will do the right thing for Australia and deliver a strong, stable, accountable government that puts the national interest first and delivers a better future for all Australians. We will restore accountability and improve transparency measures to be more accountable to you. We will govern for all Australians, not favour any particular group. Were all in this together and well encourage all Australians to work together. We will end the class war and the bad blood between Labor and business that is damaging investment and employment".

Well, that worked out well so far. "We are not like the Labor Party". Deposed one PM. How many have left? If they aren't talking about Labor, they obsess over one group - business. Of course, transparency would be nice on the tax revenue collected from hidden taxes that never appear on clothing, petrol and many other items. The average wage earner pays nearly $6,000 in indirect taxes (GST, excise, customs etc.) on top of income tax. When will the PM address this burden on households?

No wonder we only hear of evil Labor and its policies.