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

So we are actually providing tax relief for the express purpose of encouraging investment. What Labor is doing is proposing to increase tax, which will have, inevitably, the same consequence: it will discourage investment. You increase the tax on something, you will get less of it; you lift the tax off, you will get more of it. That is Labor's approach.

The rest of the honourable members' housing affordability project will result in house prices being reduced, new homebuyers being squeezed out of subdivisions and the amount of rented property—that is to say, property available to tenants—reducing over time so that, inevitably, rents will go up. So house prices will come down, new homebuyers will be squeezed out because when they go out to buy a home and land package in Camden or the outskirts of Sydney or Melbourne, when they go out to do that, they will find that they will be crowded out by investors because that is the only asset class people will be able to negative gear. So they will be crowded out, and then elsewhere in the market, in properties that are bought and built for tenants, the investor owners of that will only be able to sell them to homebuyers. Inevitably, rental property will diminish and rents will go up. What an extraordinarily bungled outcome by an opposition that does not understand the first thing about the property market.

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