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

The government I lead will consider the economic challenges we face and the tax reforms required and will do so in a way that will avoid administering the massive shock that the Labor Party is proposing. The Labor Party's proposed changes to negative gearing, and indeed to capital gains tax, are absolutely calculated to undermine the value of every Australian family's single most important asset. They are absolutely calculated to discourage investment in innovation, in technology, in businesses large and small. They would give Australia the highest capital gains tax of any comparable country, with the possible exception—further research has revealed—of Denmark. Apart from that, 37 per cent, in effect, capital gains tax is the highest of any comparable country, and this at a time when we want people to invest, we want them to take risks, we want them to have a go. Labor's answer to that is: 'We'll tax you even more.'

Labor's policies are ill thought out. They will result in home values declining. How can they not? They will discourage investment. They will undermine employment. They are the absolutely worst prescription for the growth and jobs and innovation we need in 2016. By contrast, every element of our policy, including the defence white paper today, is focused on innovation, on growth and on jobs. Labor does not want to talk about defence. It is too ashamed of its neglect over so many years, or perhaps it does not care about national security. Perhaps it is so far away from relevant—national security is not relevant. Well, we believe national security is very relevant to 24 million Australians, and we stand determined to protect Australia, to ensure our security, because it is that security which underlines the prosperity we seek to build for our children and grandchildren in the years ahead.

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