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 previous answer in which he indicated that the government's tax policy would be announced on budget day. Previously, the government's position has been that there will be a tax statement in advance of the budget. Is the government's position now that the tax statement has been cancelled along with the green and white paper on tax?

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

I thank the honourable member for his question and appreciate his curiosity about the timing of government statements on tax. I can assure him that all of the government's tax policy will be set out, in full, in the budget, and I look forward to him welcoming the budget. I can say this: our budget, the budget that the Treasurer presents, will be one that will support growth, jobs and investment. The measures that the shadow Treasurer has announced already are absolutely calculated to reduce employment, to reduce investment and to hold the economy back. He is seeking to place an additional tax on investment. It is absolutely guaranteed to discourage investment. If you increase the tax on investment, you will have less of it. That has to follow. He understands that, but he does not care. He thinks we can manage with less investment.

The honourable member should understand that what Australia needs now is more entrepreneurship, more investment and more employment. The so-called negative gearing policy of the Labor Party is absolutely calculated to stand in the way of entrepreneurship. Most small businesses in this country—some of which become big ones—start off with one person's human capital. They get a job and they have income from that. Then they go and borrow some money, invest and take some risks. If it goes well, they can employ people and they can build up a business and it will create opportunities. Under the Labor Party, that path to entrepreneurship is blocked because that would-be small business man or women will not be able to offset any losses on that investment against their income. They will have to fund them out of their after-tax income, unless, of course, they already have substantial investment income. If you are wealthy enough to have lots of investments and you have investment income, then you can do it. So who loses out? It is the young would-be entrepreneur and the small business person building on their human capital. And this is from a party that claims to speak up for equality.

The Labor Party's policy that they will implement if they come into government will increase rents, reduce house prices and undermine the growth of business and business formation. It is calculated to slow the economy right at the time when we ought to be encouraging its continued growth, which is what we, for our part, will continue to do. On that note, I ask that further questions be placed on the Notice Paper.