Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. In this morning's interview, when asked about the government's tax debacle the Assistant Treasurer replied, 'There hasn't been confusion.' And in the very next answer the Assistant Treasurer said, 'On our economic plan there has been confusion.' So when the Treasurer is silenced from talking about the budget, when his Assistant Treasurer is confused about being confused, isn't it time that the Prime Minister admitted that he does not have an economic plan and his economic team does not have a clue?

Mr Sukkar interjecting—

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

The member for Deakin is now warned.

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

I thank the honourable member for his question. We return, again, to the question of economics and Labor's inability to understand the basic laws of supply and demand. Here we have the biggest asset class in Australia. Here we have the most important asset of almost every Australian family that owns a house. It is their biggest asset—

Dr Chalmers interjecting—

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

The member for Rankin has been warned.

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

and we are in a period when housing-price growth is subdued. In some states, in Western Australia, as we heard yesterday, prices are actually going down. That would be a cause of some anxiety: paying out the interest on your home and seeing the value declining or flatlining. That is a tough environment.

What Labor proposes to do is remove from the buyers for existing property any investor from 1 July 2017. At the moment, that represents in excess of a third of all of the buyers. How could that not affect the price of houses? How can Labor seriously ask the Australian people to believe that they are not putting their most important asset at risk? How can Labor seriously ask us to believe that by taking all of those investors out of the market, reducing the number of people who could potentially buy somebody's house, they are not putting that asset at risk?

What are Australians going to do? If they thought Labor was going to win the election, they could sell their properties. They might do that now, or they will save. They will not spend. They will save, they will pay down their loan and they will not consume. They will not be able to go to the bank and get a loan. They will not be able to get a loan to finance a business. Right across the board, when you undermine the largest asset class in Australia you undermine the largest single determinant of consumer confidence and of business confidence. Labor's policy is a profoundly dangerous one. It threatens families' biggest asset and it threatens our economy.

I should just add, in fairness to the honourable member for Watson, he is quite correct to pick me up. When the parliament began he did record three properties—one of which was a residence and two of which were investment properties—and he has, subsequently, sold them all. So I correct the record. I missed the honourable member's amendment—

Mr Mitchell interjecting—

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

The member for McEwen is warned!

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

He is a former rentier and has now retired from that class.

Ms Henderson interjecting—

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

The member for Corangamite is now warned. I am seeking to address the House. The member for McEwen, particularly in wake of the statement I have made, will not interject. I am well aware of the clock. The Manager of Opposition Business had raised a complaint that the Prime Minister was addressing.

Mr Albanese interjecting—

No. The member for Watson had raised it and I was—

Mr Albanese interjecting—

The member for Grayndler is warned. I was allowing the Prime Minister to do that for the benefit of the Manager of Opposition Business.