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

My question is to the Treasurer. This morning, when speaking about Labor's negative gearing policy, the Treasurer said, 'That's three strikes and you're out.' Is the Treasurer aware that the BIS Shrapnel report was paid for by an anonymous client with a commercial interest, confused the GDP of Australia and New Zealand and was done before Labor's policy was even released? Isn't it 'three strikes and you're out' for the Treasurer?

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

I thank the member for McMahon for his question. I refer him to the comments of his own alleged modeller, Professor Holden. When asked about negative gearing 12 months ago, Professor Holden said:

Ending negative gearing could obliterate the housing market, and at a minimum would hurt those invested in rental properties.

That is what the good friend of the member for Fraser said. The member for Fraser blogs on attending weddings with Labor's modellers. In this case we have his comment in relation to negative gearing.

Dr Leigh interjecting—

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

The member for Fraser will put down his prop.

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

He also makes reference to the timing of BIS Shrapnel's report. Well, the McKell report, which those opposite rely on, was published six months before Labor's announcement. And the NATSEM modelling that they rely on—this is all the modelling they talk about—was published nearly a year before Labor's policy was released. So those opposite have not only modelled their own policy, but now, when a respected organisation like BIS Shrapnel has conducted work on key elements of the policy which has been put forward—and, as the Prime Minister said, not in their wildest dreams could BIS Shrapnel have predicted that Labor would not only smash negative gearing in the way they propose to do but on top of that would actually put up the capital gains tax by 50 per cent on those same investments. They could not even imagine a policy that would be so daft.

Mr Bowen interjecting—

The member for McMahon makes reference again to this typo in the report. What it was referring to was $1.9 trillion in terms of the average of the economy over the next 10 years. The MYEFO forecasts themselves have a medium-term projection which is consistent with that, which I would suggest to the member for McMahon that he might want to familiarise himself with. When the member for McMahon wrote his own book, he could not get $500 million and $500 billion worked out! The member for McMahon is out there with a policy which we know is going to attack homeowners, renters and investors. And who are those investors that he wants to attack? As we have said time and time again, two-thirds of those claiming net rental losses have a taxable income of $80,000 or less. Those opposite are saying to the policemen, policewomen, nurses, teachers, paramedics, mums and dads and servicemen and women that it is over.; you cannot go out and invest to try and make a future for yourself. They are going to preserve that right for chief executives earning $2 million a year and $100,000 a year in share dividends.

Opposition members interjecting—

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

The member for Parramatta will cease interjecting. The members for Sydney and Isaacs are continually interjecting. They are warned.