Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Last year when asked about changing negative gearing, the Treasurer replied: 'No. I don't think we should change it.' Is that still the Treasurer's position?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I have been very clear about my view on negative gearing. The truth is that negative gearing is used in the overwhelming majority of cases by nurses, by police officers, by teachers—by ordinary hardworking Australians. They are the vast majority of people who are engaged in buying that property to give them the opportunity to grow and build and support their wealth and, in many cases, it is really the only good chance they have got. This side of the House has always supported people who are prepared to have that sort of a go. We have always supported them to do that.

What the member opposite is really inquiring into is whether there is any potential for things to be done in relation to that measure that can deal with the excesses that might occur in negative gearing—

Opposition Members:

Opposition members interjecting—

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

the excesses. What I can say to the House is the more than 80 per cent of people that are on a very modest income, an average income, who are engaged in using that opportunity, we understand why they do it. We understand that they want to be able to provide for their family, they want to be able to provide for their future, and we understand that they make sacrifices to do it. We understand that they are not the problem in our tax system, like those opposite have suggested. We understand—unlike those opposite and in the other place who have suggested that people who actually try to invest and work hard and put things away and because they have decided to do that by getting involved in those sorts of property investments that they are somehow the problem that Australia has. These are the people that are actually working hard to help our economy transition. These are the ones that are actually making the sacrifice.

If there are inadequacies in that system, if there are areas where the system is being abused or if there are areas in the system where they are excessive and there is a way to channel that sort of high-end investment into other areas, well, of course, the government would look at those things. Why wouldn't the government look at those things? But those opposite will always seek to demonise those who are working hard just to try and get ahead. They will always try to pull the rug from under them by taxing them more so they can go off on their great big spending jaunt. This side of the House—and I have been very clear on this—will always be supporting those who are trying to put themselves forward into a better position for the future, because they are working hard. They are putting those savings in—whether it is into an investment property, their superannuation or something else. They are doing the things that we are wanting them to do and encouraging them to do. Those opposite will rip the rug from under them so they can tax them more, so they can spend more.