Chris Ketter (Queensland, Australian Labor Party) Share this | Hansard source

Senator Seselja's comments illustrate the degree of panic and political chaos which exist within this government. I want to particularly emphasise the response from the Minister for Finance today in relation to my question on the issue of negative gearing. We can see that this is a government which does not want to look at the reality of the situation. My first question to Senator Cormann referred to the comments by the Treasurer. One would have thought that the Minister for Finance would be on the same page as the Treasurer in relation to the implications of negative gearing, given that Labor has been courageous in putting forward a policy that is fully funded and costed. It is a policy that breaks the mould of oppositions by addressing issues of inequality as well as the question of budget repair. We have been on the front foot. One would have thought that the Treasurer and the Finance Minister would be on the same page on this, but what Senator Cormann said in relation to the Treasurer's comments was, 'You can't believe everything that you read in the newspaper.' So, in effect, he was denying that the Treasurer had in fact made those comments about excesses in negative gearing. Senator Wong offered to table the Hansard which showed Mr Morrison's comments—not in the newspaper but in parliament. On 10 February, during question time, he was asked a question by the member for McMahon. He said:

What the member opposite is really inquiring into is whether there is any potential for things to be done in relation to that measure that can deal with the excesses that might occur in negative gearing.

So it is quite clear that Mr Morrison has identified excesses. He has formed a conclusion about the fact that there is a potential for excesses in the existing negative-gearing policy, which many commentators believe is leading to a distortion in our taxation system.

Sensible commentators have referred to this fact. None other than the Reserve Bank of Australia has looked at this issue and, over the past 13 years or so, has been indicating that this is perhaps an area that the parliament needs to look at. No less than Mr Turnbull, then a backbencher, indicated in, I think, 2005 that Australia's negative-gearing regime was extremely generous. Most people concede that, around the world, our negative-gearing policy stands out as being an exception to the rule. We know that there are many other respected economists who applaud Labor's position in relation to this matter. We have put forward a thoughtful, considered policy initiative.

We know that the backbench on the other side are desperate because of the rudderless and leaderless position of their government in respect of economic matters. They are desperately looking for an opportunity and they see a political opportunity to differentiate themselves from the Labor position, so they are putting pressure on the government not to make changes to negative gearing, not for reasons as to the efficacy of negative gearing and not for reasons of fairness in our taxation system and what is right for the country. No. This is a poll-driven response and a short-term approach which is unbecoming. It is not the type of approach that one would expect from Mr Turnbull, who forswore using scare campaigns. He thought that his new brand of economic leadership was going to deliver a more enlightened approach in which ideas can be properly considered. That dream of an enlightened approach has been snuffed out in recent times. We have seen a panicked government. This is a government in total disarray.