Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, the Treasurer has expressed a willingness to address excesses in negative gearing. Prime Minister, what are the excesses in negative gearing?

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

I thank the Prime Minister for the opportunity to talk about these issues. They have asked us about negative gearing and these policies, and it gives me the opportunity to talk about the policies of those opposite. On capital gains tax, an increase in the capital gains tax rate of 50 per cent—

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on direct relevance. It is also an opportunity for the Treasurer to talk about his own policies—if he had one!

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for McMahon will resume his seat. The Treasurer will resume his seat.

Honourable members interjecting—

Members will cease interjecting, including the Leader of the House.

Mr Pyne interjecting—

No, the Leader of the House will not interject. Whilst the question was a short question—I appreciate that and acknowledge it—as with answers, some questions contain long preambles. I acknowledge that that did not, but the Treasurer is entitled to have a preamble to his answer. When the member for McMahon rose, the Treasurer had been on his feet for 12 seconds. We have to be a bit practical about these things.

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

As I continue that preamble, let us just understand. An increase in capital gains tax of 50 per cent will apply to the following under those opposite: land and buildings, shares in a company and units in a unit trust—

Ms King interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Ballarat will not interject.

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

rights and options, trust distributions, convertible notes, licences, major capital improvements made to certain land or pre-CGT assets, contractible rights, collectables, jewellery, artwork, the right to enforce a contractual obligation, foreign currency, interest in a partnership action and interest in a partnership that is not an interest in a partnership asset, and bitcoin. They want to build a 50 per cent increase on capital gains tax on all of those assets. At a time when we are trying to encourage investment in the transition of our economy, their policy is one big fat tax on investment.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker—

Mr Pyne interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Leader of the House does not need to interject. The Manager of Opposition Business would be aware that a point of order has been made on relevance already, and only one is allowed. I am certainly listening to the minister, and I will hear from the Manager of Opposition Business, given his position, as I would hear from the Leader of the House.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Thanks, Mr Speaker. In terms of defying your ruling: you made a ruling about the preamble to the answer—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business will resume his seat. I am going to hear the Treasurer for the remainder of his answer. I made clear in my first days as Speaker that, provided that the answer was on the policy topic—

Ms Plibersek interjecting—

No, the member for Sydney will not debate the issue with me. She is warned. I am simply not going to be interrupted all through question time. What I am now going to do is just call the Treasurer. I will respond after he has concluded his answer.

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

So it is not the government's policy to follow those opposite, who believe in higher taxes for higher spending down that path, as they have outlined, to apply a 50 per cent increase in capital gains tax to all of those things, which would be a punishing tax on investment at a time when it is the last thing that this country could afford to go down that path.

But I am asked about negative gearing. I am asked about that, and it gives me the opportunity to remind those opposite about what we do not believe on this side. We do not think it is excessive that policemen, that nurses, that paramedics, that schoolteachers and that some two-thirds of those who have a taxable income of $80,000 and less invest in negative gearing. We do not think that is excessive, but those opposite do.

Those opposite think that, for someone who negatively gears one property and claims net interest deductions or net rental losses of around $10,000, that is excessive, and it must be stopped. They think nurses who are trying to save for their future and small businesses and mums and dads who have gone out there and bought an investment property are the problem. They think they are the reason why their kids have to pay higher prices for their houses—not because successive Labor governments at a state level contracted places like Sydney, put the 'shut' sign up and stopped the building boom that could have continued in those states when the member for McMahon was serving that great minister in New South Wales, Minister Carl Scully. That is what they think. They think the mum and dad investors of this country are the problem.

On this side of the House, we know they are the answer because they are investing in their own future, and they are investing in the future of this country. Those opposite just want to tax them silly.