Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Ludlam for that question. The Australian government wants every Australian to have the best possible opportunity to get ahead, and that is of course why we are working so hard to strengthen growth, to create more jobs and to create the best possible opportunity for every single Australian to get ahead. When it comes to housing affordability that is a very important issue, and of course we want all young Australians to be able to afford their own home—of course we do. The way to ensure housing affordability at a time when prices go up because there is stronger demand than supply in the market is by increasing the level of supply. And there are a whole range of things that will need to be done in relation to this, and the Commonwealth and state and territory governments are focused on these areas of public policy.

To suggest, as Senator Ludlam seems to be suggesting, that the sort of approach that Labor is proposing would be the way to address it is entirely false. We reject that. To make the sort of change to negative gearing so called that Labor is suggesting would push up the cost of rental accommodation, it would push up the cost of rentals, and it would drive down property values in the established property market and it would drive down property values across the board, and that is not a policy that we support.

The Greens are quite entitled as part of their longstanding coalition with Labor to pursue increased taxes on middle-income earners across Australia—on the police officers, nurses and teachers that are taking advantage of the opportunity to invest in residential property and to deduct the cost incurred in generating income from that investment from that income before it is taxed. That is the way the system currently works. If Labor and the Greens want to go to the Australian people in their usual coalition and sell that sort of policy, good luck to you.