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

My question is to the Prime Minister. Prime Minister, given the Treasurer has refused to outline to the House what the excesses are in negative gearing, will the Prime Minister outline to the House the government's views of the excesses in negative gearing?

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

There is one thing that the opposition do not have an excess of and that is due diligence and care. The recklessness with which they prepared their tax policy underlines that. Let me lay out coolly and clearly the challenge that faces Australia. We have seen the biggest mining boom in our history. Our economy has been driven by a massive level of mining construction investment. That is tailing off. How do we transition to a new economy? How do we succeed in the 21st century? How do we do that and ensure that our children and grandchildren have good, high-paying jobs? We do that by ensuring that we have open markets. We do that by ensuring that we have access to the fastest growing markets in the world, and we have done that with free trade agreements with Japan, Korea and China and the TPP, thanks to the outstanding leadership of the former trade minister Mr Robb. We have done that, but clearly we have to be more competitive, more productive, more innovative.

So how do we ensure that Australian businesses and investors support innovative companies? You provide incentives, and that is what we have done in the Innovation and Science Agenda. We provided real incentives for universities to work with business.

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

On a point of order, Mr Speaker—

Mr Husic interjecting—

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

The Prime Minister will resume his seat. The member for Chifley will cease interjecting. The member for McMahon on a point of order?

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

Thank you, Mr Speaker. Cognisant of your ruling—

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

On a point of order?

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

Yes, Mr Speaker, Cognisant of your previous reminder—

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

What is the point of order?

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

that ministers should be able to answer the question—

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

No, I need you to state the point of order.

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

he is now halfway through the question, Mr Speaker, and he has not dealt with the excess that the government says exists.

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

The member for McMahon will resume his seat. At no point did the member state the point of order.

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

And so we also need the best infrastructure. We have a $50 billion infrastructure program. We are working with state government and with cities with a new cities agenda that will see us invest even more and collaborate to ensure that our cities are livable and have the amenity that their citizens deserve in the 21st century.

Government members interjecting—

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

I hear those interrupting.

Mr Pyne interjecting—

Well, I hear the Leader of the House interjecting, but no point of order was stated, as I said, and that is why I sat the member for McMahon back down. I am going to ask the Manager of Opposition Business to state his point of order.

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

Thanks. It is on direct relevance, Mr Speaker. The answer that is being given by the Prime Minister is going nowhere near the excesses in negative gearing that the Treasurer has referred to.

Mr Brendan O'Connor interjecting—

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

The member for Gorton does not need to interject additions to the Manager of Opposition Business's point of order.

Government members interjecting—

And I do not need interjections on my right either. As I said—the Prime Minister will just resume his seat for a second—I am not going to keep restating what I have said in answer to questions remaining on the policy topic and the ability for ministers to have a preamble. I am listening to the Prime Minister. I know that he has had a preamble. The question was on tax. But I would say to the Manager of Opposition Business, as calmly as I can: you will have noticed, in accordance with the practice—and it is a longstanding practice—there is a certain latitude for leaders. That is both leaders, and I allow that latitude with the Leader of the Opposition in some of the questions he has asked and, indeed, the length of his point of order where he has essentially restated a question. So the Prime Minister, I am sure, will be coming to the question of tax.

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

Thank you, Mr Speaker. So all of our policies are supporting innovation, investment, infrastructure, open markets and technology. What is Labor's tax policy going to do? Undermine confidence; undermine the value of the largest asset class, the family home. That is what their negative gearing policy will do: deprive ordinary Australians of making an investment in residential housing; deprive the members of the Leader of the Opposition's former union of doing that.

And then they want to increase, by 50 per cent, the tax on capital gains. At a time when we need more investment, when we want people to have the confidence to start the CEA Technologies of the future—to start the new firms, the new businesses—what Labor say is, 'We are going to increase the tax on you by 50 per cent.' They are upping a tax on investment just at the time when the nation needs investment. They are standing in the way of our success.

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

Just before I call the member for Hindmarsh, there were two points of order, obviously—or two members rose on points of order; the member for McMahon did not ever state a point of order.

Michael Danby (Melbourne Ports, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

You can negatively gear the family home now. It's amazing.

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

The member for Melbourne Ports will just cease interjecting, just for a second. And that is why I recognised the—

Michael Danby (Melbourne Ports, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

You can negatively gear the family home.

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

The member for Melbourne Ports is warned.

Michael Danby (Melbourne Ports, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

I was answering the Prime Minister's speech.

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

The member for Melbourne Ports will leave under 94(a). Now, I have made clear on many occasions that I regard interjections when I am addressing the House to be highly disorderly. The member for Melbourne Ports will leave immediately.

The member for Melbourne Ports then left the chamber.

And that is why I recognised the Manager of Opposition Business on his point of order. I just want to caution all members: that does not open up the way for frivolous non-points of order with members coming to the dispatch box. I just want to make that very, very clear so there are no regrets.