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

My question is to the Prime Minister. Yesterday the Prime Minister expected Australians to forget that his comments on capital gains tax referred to no increase whatsoever. Now, today, the Prime Minister expects Australians not to notice that, when the Assistant Treasurer spoke about housing prices going up, she said it would be for all Australians. Prime Minister, how did we get to a situation where, day after day, the Prime Minister keeps asking Australians to not believe what he and his ministers have said?

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

I listened very carefully to that question, as I am sure all honourable members did, and it was very, very hard to follow. It seemed almost as confused as their policy on negative gearing and capital gains. The real point here is very simply this: housing is the single biggest asset in Australia. We know that. It is the most important asset for Australian families. Their net worth is the difference between the value of the house and the level of the mortgage. As housing prices go up they feel wealthier—and they are wealthier—and they can spend. They can go and get another loan to start a business. They get another loan and give some money to their kids. They can afford to go on a holiday. But, as the value of their home comes down and that equity diminishes, so does their confidence. There is nothing more damaging to consumer and business confidence than declining asset values, declining housing values. Every Australian understands that. We all understand that, except, apparently, the economic wizards on the front bench opposite.

Labor proposes a policy that is apparently designed and calculated to reduce housing values, to provide a massive shock to an already subdued housing market where growth is expected to be modest, jogging along a little bit below inflation in some cities and actually going negative in others. In that environment, the Labor Party proposes to take a third of all buyers out of the ring. There will be no investors that would invest in residential property. So, under a Shorten government, when you want to sell your house or your apartment, there will be no investors there; only home owners. The consequence of that—

Opposition Members:

Opposition members interjecting—

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

Well, they will all be gone. That is your policy.

Opposition members interjecting—

It is there in black and white. That is what you want to do. Yet you want us to believe that that will not impact on prices. Every Australian knows that Labor have made another massive economic blunder. They have not thought this through. They could not think past the press release. They are putting at risk Australia's most important asset. They are putting at risk the fundamental asset base of our economy. (Time expired)