❓ Mr. Nalder questions the Premier on the affordability impact of Federal Labor's negative gearing policy, while the Premier defends the policy as fiscally responsible and economically sound.
AnsweredQoN 909Legislative Assembly
QuestionView source ↗
NEGATIVE GEARING —
FEDERAL LABOR POLICY
909. Mr D.C. NALDER to the Premier:
I refer to Bill Shorten's
attack on Western Australian households with his negative gearing and capital
gains tax grab. Can the Premier explain how Labor's policy makes
housing more affordable, as Bill Shorten claims, if house prices will not go
down as the Treasurer claimed yesterday in this place?
FEDERAL LABOR POLICY
909. Mr D.C. NALDER to the Premier:
I refer to Bill Shorten's
attack on Western Australian households with his negative gearing and capital
gains tax grab. Can the Premier explain how Labor's policy makes
housing more affordable, as Bill Shorten claims, if house prices will not go
down as the Treasurer claimed yesterday in this place?
AnswerView source ↗
I thank the member for Bateman for
the question.
At the outset, I am impressed that
Mr Shorten and federal Labor have announced a significant policy to provide
Australians with advice about how federal Labor will pay for its commitments at
the next federal election. We should all be impressed by the policy honesty of
federal Labor on this matter. The argument of the Liberal Party, as I understand
it, is that the changes suggested to be put in place by Bill Shorten will drive
down the supply of housing and drive down the price of housing at the same
time.
Mr D.C. Nalder : Demand.
Mr M. McGOWAN : If the member
follows market economics —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman! I heard you the first three times.
Mr M. McGOWAN : If the member
had done economics at high school, he would know that this is a nonsense. It is
a nonsensical argument that if supply is driven down, the price is also driven
down.
Several members interjected.
The SPEAKER : Members on my
left!
Mr M. McGOWAN : Labor has made
a commitment that the negative gearing arrangements that currently exist will
be grandfathered for all existing properties and, under the policy, new houses
built will be negatively geared for investors. But for investors buying houses
after the policy comes in—presumably sometime next year, if Labor is
elected—negative gearing will not be in place. That is a fairly reasonable
way of putting in place a policy to ensure that Australian taxpayers get some
policy honesty on how the federal opposition is going to fund its election
promises. I have read lots of columns and most economists think it is quite a reasonable
way forward.
the question.
At the outset, I am impressed that
Mr Shorten and federal Labor have announced a significant policy to provide
Australians with advice about how federal Labor will pay for its commitments at
the next federal election. We should all be impressed by the policy honesty of
federal Labor on this matter. The argument of the Liberal Party, as I understand
it, is that the changes suggested to be put in place by Bill Shorten will drive
down the supply of housing and drive down the price of housing at the same
time.
Mr D.C. Nalder : Demand.
Mr M. McGOWAN : If the member
follows market economics —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman! I heard you the first three times.
Mr M. McGOWAN : If the member
had done economics at high school, he would know that this is a nonsense. It is
a nonsensical argument that if supply is driven down, the price is also driven
down.
Several members interjected.
The SPEAKER : Members on my
left!
Mr M. McGOWAN : Labor has made
a commitment that the negative gearing arrangements that currently exist will
be grandfathered for all existing properties and, under the policy, new houses
built will be negatively geared for investors. But for investors buying houses
after the policy comes in—presumably sometime next year, if Labor is
elected—negative gearing will not be in place. That is a fairly reasonable
way of putting in place a policy to ensure that Australian taxpayers get some
policy honesty on how the federal opposition is going to fund its election
promises. I have read lots of columns and most economists think it is quite a reasonable
way forward.
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