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

My question is to the Treasurer. Today, in opposing Labor's reforms to negative gearing, the Treasurer described negative gearing as 'an entirely legitimate practice to offset the cost of earning an income against that income'. Is the Treasurer aware that that is not actually negative gearing and is a practice unaffected by Labor's policy? Does the Treasurer actually know what negative gearing is?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The member opposite has just demonstrated again why those opposite are not able to manage a transitioning economy, if they cannot manage the most basic of concepts. In today's national accounts—this is the real issue today—0.8 per cent was the quarterly growth in household final consumption, and there was 2.2 per cent growth in dwelling investment. I raise those two points for a particular reason. One of the reasons our economy is performing so well at the moment is the confidence in the household sector. What those opposite would do, with their policy, when it comes to the most important asset that Australians own—their own home—is that they would undermine confidence. They would undermine confidence in their own financial position, which is the reason that currently, with the reverse of that—with the increase in confidence—we are seeing the household sector perform so strongly.

Of the 0.6 per cent growth in the economy in that last quarter, the contribution of the household sector was 0.4 per cent. But the other one I highlighted is dwelling investment. I know you are not interested in the economy—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order on direct relevance. The question goes quite specifically to the definition of negative gearing. The Treasurer, by going nowhere near that, is actually answering the question in a pretty emphatic way.

Mrs Sudmalis interjecting—

Ms Kate Ellis interjecting—

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

The member for Gilmore will cease interjecting. I think the member for Adelaide was interjecting. If she was, she will cease interjecting. I can recognise voices much better than when I first became Speaker.

I do not agree with the point of order of the Manager of Opposition Business, and I am going to say why. I had cautioned the member for McMahon about his questions, and it had a lot of information in it. It had an ironical expression at the end.

An opposition member interjecting—

That does offend the standing orders. And I am going to be as lenient on the minister as I was on the member for McMahon. He is on the policy topic.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, on the point of order: there is nothing ironic, given the quote that was given, in asking whether the Treasurer knows what negative gearing is. The quote went specifically to—

Mr Ewen Jones interjecting—

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

The member for Herbert is warned.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

describing negative gearing by a definition that is not negative gearing, and therefore it is asking whether he knows what it is. That is not ironic; it is a very specific question—

Mr Pyne interjecting—

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

The Leader of the House will stop interjecting. The Treasurer is still on the policy topic and I am listening carefully to him, but I have cautioned on some of the questions and I am flagging it up-front. The Treasurer has the call.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I know those at home are less interested in the schoolboy debating tricks of those opposite. What those on this side of the House are interested in is what is happening in the real economy in Australia—and the jobs that are being created, and the innovation that is being unleashed, and the support that is going in for small business but particularly in relation to dwelling investment. With dwelling investment we had a 2.2 per cent growth in the December quarter. The predominant component of that growth was actually in the apartment market. And do you know who buys investment apartments predominantly, Mr Speaker? Investors. Investors are the ones who buy apartments. And one of the reasons that they buy apartments is that they can sell them to someone else, on the other side—

Opposition members interjecting—

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

Members on my left!

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

And what those opposite are proposing is that those who would invest in apartments, those who would create the rental stock and make it available for the 30 per cent of people who rent in this country—they are saying to them, 'Not only are we going to take one of three out of the purchasers who might buy your property out of the market but we are also going to increase the capital gains tax on your gain by 50 per cent.' If those opposite cannot understand that that would not have a terrible impact on the sort of numbers that we are seeing in here in the December quarter national accounts, and if they do not understand that that puts at risk the transitioning of our economy, then they simply do not get it.

Mr Brendan O'Connor interjecting—

Mr Bowen interjecting —

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

The member for McMahon will cease interjecting. The member for Gorton was interjecting loudly into my left ear. He is now warned. I remind the member for Sydney that she has been warned and should not keep interjecting if she wishes to remain in the chamber.