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

My question is to the Prime Minister. Since he took the top job, the Prime Minister has put on the table tax changes to the GST, negative gearing and superannuation. But, as the former Prime Minister pressures him to take each item off the table, when will the Prime Minister admit that this year's budget is looking more and more like a repeat of the Abbott government's budget of 2014, with its cuts to families, pensions, health and education?

Ms Macklin interjecting—

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

The member for Jagajaga has already been warned.

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

I thank the Leader of the Opposition for his question. Speaking of budgets, the first budget of a Shorten government would devastate small business, would devastate investment, right across Australia. The successful transition to the new economy requires an innovative Australia. It requires a technologically sophisticated Australia. It requires science to work with industry. It requires open markets. It requires continuing the great work of Andrew Robb in opening up free trade agreements with the economic giants of Asia. All of those things we are doing. It requires a commitment to ensuring that as much of our defence materiel, defence assets and defence science is created here in Australia with the best Australian innovation and technology, and we are doing that. But, above all, it requires entrepreneurship. It requires Australians to have confidence in the future and be prepared to take a risk and be prepared very often, if not most of the time, to borrow some money, invest in a business, invest in an asset, and actually have a go. That is what entrepreneurship is all about. What we are doing is we are providing very real incentives for investors to invest—

Opposition Members:

Opposition members interjecting—

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

On my left!

Ms Owens interjecting—

The member for Parramatta is warned.

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

in early-stage start-ups, early-stage companies, high-risk ventures. We know many of them do not succeed, but nonetheless we want to make sure that seed capital is there.

What Labor are doing is saying, in the words of their own shadow Treasurer today, in his own policy document, a policy document which was purportedly about housing but in fact covers the whole economy—this document would result in the situation that, if a person went to the bank and borrowed money to capitalise a company, perhaps with some friends, to start a business, and then if the income from that company, if the dividends from those shares, were less than the costs—

Mr Conroy interjecting—

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

The member for Charlton will cease interjecting. The member for Charlton is warned.

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

of the loan, less than the interest, he or she would have to pay that loss out of their after-tax income. It is difficult to imagine anything that would more dramatically cramp, block, investment and entrepreneurship than that. I have never heard of a proposal to deal with negative gearing beyond the residential housing sector. Maybe there have been. I have not seen them. This proposal is a dramatic, extensive attack on the entire Australian economy. It puts our whole economy at risk. (Time expired)