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

I do not think the significance of the changes that Labor is proposing to the tax system is generally understood. They represent, for example, that negative gearing represents some kind of special concession. So-called negative gearing is no more than income tax 101. It enables a taxpayer to deduct the interest cost of borrowings incurred for the purpose of acquiring an income-producing asset. They bring the income to account and they also bring the cost of the borrowings to account. If that results in a loss, then that can be called negative gearing. This is an absolutely standard business practice engaged in by millions of businesses and well over 1.4 million Australians in respect to residential property alone. The Labor Party claims that they are concerned about housing affordability.

Ms Macklin interjecting—

See this speech in context