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 his claim that all investors will leave the property market under Labor's negative gearing reforms. So why, when speaking about negative gearing, did a Treasury official give this evidence to a parliamentary hearing, 'Investor behaviour is not driven by tax treatment.'?

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

I note the honourable member's question, and I just refer him to his own policy document, which states that the combination of the capital gains discount and negative gearing—so it asserts—has led to overinvestment in loss-making investments on existing property.

Ms MacTiernan interjecting—

So I am intrigued that he has taken an interest in the quote from the Treasury official. It is entirely at odds with his own policy document. He knows that his policy will drive down housing values. It will put at risk the most important asset—

Ms MacTiernan interjecting—

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

The member for Perth will cease interjecting!

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

of most Australian families. The honourable member knows that, and he knows that the only investors favoured by his policy are not the fitters or the steelmakers, or the teachers or the nurses, who he talked about yesterday. The only ones he favours are people with large investment incomes. He really is not the workers' friend—

Alannah Mactiernan (Perth, Australian Labor Party) Share this | Link to this | Hansard source

Tony's tradies!

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

The member for Perth is now warned!

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

He is setting up as the workers' foe and, whether deliberately or ignorantly, he has served to give a privileged position to those with substantial investment incomes. I do not believe that the homeowners of Australia could feel safe with their major asset put at risk by this would-be Treasurer.