Michael Sukkar (Deakin, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how Australia is successfully transitioning to a more diversified economy. Is the Treasurer aware of any risks to jobs and growth during this transition and, in particular, any alternative policies that could potentially dent confidence and reduce investment?

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

I thank the member for Deakin for his question. He, like so many members on this side, is very pleased about the fact that our economy, as the Prime Minister was saying, is transitioning positively. This is a good thing. Yesterday's national accounts with real GDP growth through the year of three per cent is something we on this side of the House are very pleased to see and we are very pleased to see that continuing increased household consumer confidence. New dwelling investment, particularly in the apartment sector, which is often driven by investors, and services in agricultural exports is improving. But today we have further data which shows that the AiG Performance of Services Index recorded in February the strongest rise in 14 months. The VFACTS new vehicle sales data for February was up 14.3 per cent—6.7 per cent over the past year. Importantly, business buyers for vehicles were up 15.6 per cent over the year. Our economy is successfully transitioning and how we manage that transition is the key challenge facing the country going forward. That is an important responsibility for the government. It is one we continue to manage well.

But there are threats to it. Those threats sit opposite in the proposals that are put forward. The negative gearing proposal that they have put forward, as I just referred to in a previous answer—there is independent modelling, which I should stress is by an organisation which was quoted by the member for Fraser when he wanted to talk about property prices in Canberra; it has been quoted by the former union of the Leader of the Opposition, the AWU; and it has been quoted by the ACTU as well. They have delivered a report which shows that rents will be up; GDP will be hit by $19 billion; there will be 175,000 fewer jobs; house prices will fall; 70,000 householders will be put into housing stress and that $1 billion a year in revenue will be lost to the states.

It is bad if you own a home. It is bad if you want to invest in a home. It is bad if you rent a home. It is also bad if you want to build a home. And that is not the full story, as I said, because the increase of 50 per cent in capital gains tax is not included in those numbers. It shows that those opposite have rushed out there without doing their homework on an important area of economic policy. That is why they cannot be trusted to manage the successful transition that is occurring in this economy.

Mr Watts interjecting—

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

The member for Gellibrand is warned.