George Christensen (Dawson, National Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister outline to the House why housing values are the bedrock of certainty and security for Australian families?

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

I thank the honourable member for his question. I appreciate, as he does keenly, how important the value of housing is to the economic security of the people of his electorate, who are already dealing with the transition from the mining construction boom and the consequences of that. I note that, in the Mackay region alone, there are more than 5,700 property owners who claim net rental losses on their investments—who negatively gear their investments.

Mr Albanese interjecting—

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

The member for Grayndler will cease interjecting!

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

Honourable members know that housing represents about 65 per cent of the net worth of all Australian households. There is $5.56 trillion invested in housing—that is nearly three times the size of the total amount invested in superannuation. If house prices were to fall by just five per cent, that would wipe $278 billion off the national balance sheet, and it would disproportionately affect lower income households—71 per cent of the net worth of the lowest income households in Australia is in housing.

Ms Chesters interjecting—

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

The member for Bendigo is warned!

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

If house prices were to fall by just five per cent, it would leave households in the lowest income quintile, the lowest 20 per cent, just under $12,000 poorer.

The Leader of the Opposition likes to say that negative gearing—the ability to claim a net rental loss—benefits only the wealthy few. I know, as the honourable member does, that many of those people claiming net rental losses in his electorate are members of unions. I imagine many of them are members of the AWU. Of course, the Leader of the Opposition, when he was the national secretary of the AWU, said, talking about negative gearing:

These tools are not accessible to members of the Australian Workers Union and other ordinary working Australians.

Well, there are 82,290 fitters in Australia and 9,585 of them use negative gearing—that is 11.6 per cent. Their average net rental loss is $10,000. There are 109,000 steelworkers in Australia and 9,480 of them use negative gearing—that is 8.7 per cent. Their average net rental loss is $9,920. There are 104,000 metalworkers and 11,000 of them use negative gearing—that is 10.6 per cent. Their average net rental loss is $9,740. The honourable member knows full well what the opposition leader does not: Labor's attack on negative gearing is an attack on the savings of ordinary Australians. (Time expired)

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

The member for Bass will resume his seat. The Manager of Opposition Business has the call.