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

Bank customers certainly would not be able to claim a tax deduction for interest if the Labor Party got in and abolished negative gearing. They certainly would not be able to do that. I should correct myself: wealthy borrowers, who could offset their interest cost against their investment income, would be able to, but doctors, nurses, policemen, teachers and other people would not be able to offset it against their employment income. So the Labor Party has a hide to talk about deductibility of interest. On this side of the House interest is deductible if it is incurred to acquire an income-producing asset, in accordance with the provisions of the income tax act since 1911, I believe. As far as the deductibility of the bank levy is concerned, the bank levy is a business expense, and they will be able to treat it like any other expense. I would invite the Treasurer to say a little more about this matter.

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