Chris Bowen McMahon, Australian Labor Party, Shadow Treasurer
2:33 pm
My question is to the Prime Minister. I refer to his claim that all investors will leave the property market under Labor's negative gearing reforms. So why, when speaking about negative gearing, did a Treasury official give this evidence to a parliamentary hearing, 'Investor behaviour is not driven by tax treatment.'?
Malcolm Turnbull Wentworth, Liberal Party, Prime Minister
I note the honourable member's question, and I just refer him to his own policy document, which states that the combination of the capital gains discount and negative gearing—so it asserts—has led to overinvestment in loss-making investments on existing property.
Ms MacTiernan interjecting—
So I am intrigued that he has taken an interest in the quote from the Treasury official. It is entirely at odds with his own policy document. He knows that his policy will drive down housing values. It will put at risk the most important asset—
Ms MacTiernan interjecting—
Malcolm Turnbull Wentworth, Liberal Party, Prime Minister
of most Australian families. The honourable member knows that, and he knows that the only investors favoured by his policy are not the fitters or the steelmakers, or the teachers or the nurses, who he talked about yesterday. The only ones he favours are people with large investment incomes. He really is not the workers' friend—
Malcolm Turnbull Wentworth, Liberal Party, Prime Minister
He is setting up as the workers' foe and, whether deliberately or ignorantly, he has served to give a privileged position to those with substantial investment incomes. I do not believe that the homeowners of Australia could feel safe with their major asset put at risk by this would-be Treasurer.