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

The government will make a full tax proposal. We will do so after we have considered all of the considerations—all of the matters—and I can say to the honourable member opposite that increasing capital gains tax is no part of our thinking whatsoever. I could also say to the honourable member, who said I was a liar when I suggested that his negative-gearing proposal would result in a decline in property prices—the very eloquent member there, who is so happy to use strong arguments; let me put this to the honourable member—in December, 34.7 per cent of all new housing loans were made to investors. So what the Labor Party proposes to do is, from 1 July 2017, remove from the buyers for established property over one-third of the demand. And these economic geniuses want us to believe that is not going to have any effect on prices. They believe you can take one-third of all of the buyers out and prices will remain the same. What sort of fantasy world is that? Let me say for the benefit of the honourable member, who, like me, lives in Sydney: that 34.7 per cent is a national average. The percentage of investors in terms of homebuyers' residential purchases in Sydney or, indeed, in Melbourne would be, as we know, considerably higher.

We know that there would be nothing more damaging to confidence and growth than smashing housing prices. Every single Australian recognises that the bulk of most families' assets is in their home. It is well over 65 per cent across the board, so you knock that price down; you knock that value down. That is what Labor is proposing to do—cut out over a third of the demand and knock that price down. And what does that do for consumer confidence? Are people going to go out and buy a new appliance? Are they going to borrow money to start a small business? Are they going to hire somebody if they see their greatest asset shrinking before their eyes, at the hands of the Labor Party? Every measure they propose is calculated to drive our economy into the ground.

Mr Fitzgibbon interjecting—

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