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

My question is to the Prime Minister. I refer to the Prime Minister's answer a few moments ago, in which he claimed that reducing the capital gains tax discount would punish foreign investors and said, 'That will drive jobs away; it will drive investment away.' Is the Prime Minister aware that foreign investors in Australia do not receive the capital gains tax discount?

Mr Dutton interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister for immigration will cease interjecting.

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

Again, the honourable member demonstrates how little he understands of the way in which markets are connected. Imagine the situation of an entrepreneur. We all recognise that our most valuable capital is our human capital. And human capital is mobile; our smartest people and the world's smartest people can live anywhere they like. So as we are trying to attract talent back from Silicon Valley, as we are trying to bring the smartest people to work in Australia and invest in Australia, we are saying, 'Come and live here. This is a great environment. Look at our National Innovation and Science Agenda. Look at all these opportunities for collaboration with universities.' What the Labor Party is saying is, 'Oh and by the way, if you do come here and start a business, and you do make some money and you do invest, you'll pay the highest capital gains tax in the world.'

Mr Brendan O'Connor interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Gorton will cease interjecting.

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

And then they are also saying to bright young Australians, many of whom are already in Silicon Valley, 'When you're weighing up when you're going to start your business, when you weigh up where you're going to incorporate your company, when you weigh that up, stay in Australia because it is your patriotic duty,' according to the Labor Party, 'to pay the highest capital gains tax in the world.' That is what Labor is saying, demanding that we seek to compete with not one but two hands tied behind our backs. Labor has not thought this policy through. Let's be frank. What they have done is set out to go for a 'soak the rich', 'politics of envy' policy. That is what they have gone for, and it has backfired. I will leave the member for McMahon with this sobering thought. There are nearly twice as many people in his electorate who are negatively geared as there are votes needing to change hands for him to lose his seat. He should think about that.