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Labor blasts treasurer for 'lying' over negative gearing report – politics live Coalition on defensive as Labor attacks leak of classified material – politics live
(35 minutes later)
3.19am GMT 3.53am GMT
03:19 03:53
On the BIS Shrapnel report now. The shadow treasurer Chris Bowen would like the treasurer Scott Morrison to admit he’s a goose. Malcolm Turnbull, undeterred:
Q: Does the treasurer admit his claims were wrong and he attached himself to a report with a $1 trillion error? What this document does is restrict the ability of every Australian to invest in any other asset class apart from new residential property and claim a net loss against their other income.
No, Morrison is not inclined to admit he is a goose. So no more business partnerships, unless you want to run the risk of paying for the losses out of after-tax income. No more investing in businesses, or setting up a company, it might be a couple of tradesmen, tradeswomen setting up a company – they won’t be able to do that because if they borrow money to buy the shares and they don’t get enough dividends to offset the interest then they won’t be able to deduct it against income.
It is true the BIS Shrapnel modelling does not include all the elements of Labor’s policy. It doesn’t include the 50% increase in capital gains tax, Mr Speaker! 3.50am GMT
The member for McMahon has come to the dispatch box all hairy-chinned and hairy-chested, Mr Speaker. 03:50
He’s come here and he’s talked about a typo in the report.
Morrison says Bowen can’t quibble about typos, given there’s a typo in his book which turned billions into millions.
You want to talk about typos - check your own book!
3.12am GMT
03:12
Labor is back now on the leak to the Australian.
Q: Will the prime minister today explicitly express confidence that this leak has not come from any current or former member of the national security committee of cabinet?
Manager of government business Christopher Pyne says how can the prime minister answer this question given the police have been asked to investigate the leak and identify the leaker?
Speaker Smith waves it through.
Malcolm Turnbull:Malcolm Turnbull:
Of course I have confidence in all of my ministers. Let me detail Labor’s negative gearing policy ..
Mr Speaker, as this matter is part of an ongoing investigation ... I am not going to comment on it any further and the leader of the opposition should consider whether he wants to continue to make mischief out of what is a very serious matter. Chris Bowen:
Updated You might as well detail Labor’s because you can’t detail your own!
at 3.18am GMT 3.47am GMT
3.08am GMT 03:47
03:08 Just letting you know.
First Dorothy Dixer is pulling the levers of government. #BREAKING: Fair Work Commission Vice President Michael Lawler has resigned from the commission effective immediately.
3.06am GMT I’ll come back to this when time permits.
03:06 3.44am GMT
Question time 03:44
Gather round for the last hour of glower of the week. The Labor leader Bill Shorten is picking up on the Pell evidence. Labor’s Kate Ellis.
Q: Will the prime minister join with Labor and commit to a single national redress scheme for survivors of child sexual abuse? Q: Isn’t it the case that by rejecting Labor’s housing affordability plan the prime minister is choosing to protect $32bn of tax loopholes at the same time he is cutting $30bn from our schools?
Malcolm Turnbull says the government recognises the importance of developing a national approach to redress as quickly as possible. Malcolm Turnbull goes to his critique of the policy.
Survivors want redress, they deserve redress to assist with the healing process. I suspect some Honourable Members opposite ... were not aware of how radical this policy is. The policy document is headed “housing affordability”, but in fact what it does is it removes the right to offset the losses from any investment against wages or salary, personal income, unless that investment is a piece of new residential housing. It expressly prohibits negatively gearing investments in shares and other assets as the shadow treasurer said this morning.
He then throws to Christian Porter, the minister for social services, who says this. If some people set up a business and borrowed money to buy the shares in the company, they could not offset any losses against their income. Mr Speaker, what this constitutes is a full-frontal assault on business in Australia. It seeks to restrict citizens’ ability to invest, not just in established residential property but in every single asset class, every single asset class other than new residential property.
I don’t think anyone in this House should underestimate the intense difficulty which will be occasioned in trying to workout a national scheme or national approach, and we favour the latter, but this will revolve around issues of funding. The scale of this disruption is enormous.
One of the reasons we determined to follow the second of the two options the Royal Commission noted is that it will necessarily involve cooperation and agreement from each and every jurisdiction. 3.39am GMT
We are trying the second way and I do believe we can be successful. 03:39
2.42am GMT I suspect this breaches the no props rule.
02:42 3.38am GMT
Chalmers notes the government is an .. 03:38
... economic omnishambles! Dorothy Dixers have trended back now to terrible unions and how much Labor loves terrible unions.
Warning. Do not play this clip if you are uncomfortable with bad language. 3.36am GMT
But if omnishambles is a new concept for you, and you don’t mind a cuss, this clip will provide valuable context. 03:36
Cheeky of Chalmers, given Labor has endured Gary Gray’s theatrical freelancing and Joe Bullock’s resignation this week, but at least this will give us a pre question time laugh. Just a mild observation. In general, the government’s arguments this week about the potential deficiencies in Labor’s negative gearing policy have been much sharper, far less hysterical, than the scare campaign of week one.
Speaking of question time, just over the hump. Pour yourself a stiff scotch. If the government didn’t keep over-egging with silly sorties like the BIS Shrapnel report, we would have spent more of this week looking at the detailed arguments: does the Labor policy advantage higher income earners/will it trigger a bunch of unintended consequences in the housing market/will it impact the resale market for investors in damaging ways?
2.36am GMT These are all reasonable questions. But the government keeps muffling its legitimate critique with silly overstatement and over-reach.
02:36 3.29am GMT
I think we can take Hawke’s comments as confirmation a backbencher has fallen off the wagon on the life insurance bill. 03:29
2.29am GMT Shorten again.
02:29 Q: Today the treasurer’s continually staked his credibility on the credibility of the BIS Shrapnel report. Is the prime minister aware that respected economist John Daley of the Grattan Institute has rejected that same report, saying: “Voters should be asking themselves whether a responsible government would rely on this sort of nonsense in a public policy debate.” Is this morning’s farcical performance from the treasurer what the prime minister meant when he promised to respect the intelligence of the Australian people?
Liberal Alex Hawke is attempting to clean up now at the dispatch box. Malcolm Turnbull outlines his critique of Labor’s policy. He finally winds round to BIS Shrapnel. Labor’s policy is ..
Hawke says Bert Van Manen is allowed to disagree. ... so much worse than that contemplated by BIS Shrapnel.
We handle disagreement well. Nobody – no-one could have imagined such a reckless assault on Australia’s economic freedom as this!
(Laughter from across the dispatch box.) 3.24am GMT
Alex Hawke: 03:24
You laugh because you are bunch of communists. You execute people who disagree with you! Michael Safi
Updated Back briefly to Bert Van Manen and life insurance. A spokeswoman for Van Manen has now confirmed the Queensland MP will be voting against bolstered regulation for the life insurance industry – including the scaling back of up-front and ongoing commission payments.
at 2.38am GMT “He’s been in consultation with quite a few independent financial advisors who are going to be significantly affected by this. He has spoken to Kelly O’Dwyer and let her know that ... because of a few apples, a lot of people will be punished,” she said. “It’s not about protecting mates of anything like that. He just understands people will be worse off, punished when they’re not doing the wrong thing.”
2.25am GMT As ASIC review of the industry, which prompted these changes, found a strong correlation between high up-front commissions and poor outcomes for consumers, including being “churned” through a number of different, largely unnecessary products.
02:25 3.22am GMT
In the House. 03:22
On a day when it is just total mayhem ... Independent Bob Katter asks about the backpacker tax, which has been controversial in the regions. Morrison acknowledges the controversy and suggests the proposal could be adjusted in the coming budget.
This is Labor’s Jim Chalmers, who says a government backbencher, Bert Van Manen, has just told the chamber he will not support the government’s life insurance bill.
This is a very big deal, Mr Speaker. This government is hopelessly divided on economic policy.
(I was watching Peter O’Neill and didn’t see his intervention. I’ll check when there’s a moment.)
Updated
at 2.37am GMT
2.19am GMT
02:19
Meanwhile, back to the negative gearing fracas. That BIS Shrapnel report? It wasn’t us, says the property council (the lobby group representing property developers.) We didn’t commission it. We didn’t release it.
Property Council say they didn't commission the BIS Shrapnel report into negative gearing #auspol pic.twitter.com/uddgL3kT5N
2.11am GMT
02:11
Manus Island detention centre has damaged PNG's reputation, says prime minister
Over at the press club, PNG prime minister Peter O’Neill has been asked whether he feels the Manus Island detention centre harms his country’s reputation. Yes, is the answer.
It has done a lot more damage for PNG than anything else.
O’Neill says he inherited the detention facility from the previous government. We have a responsibility to make sure it works, that refugees are resettled, that non genuine refugees are sent back, he says. O’Neill says there are issues around the costs of resettlement – PNG can’t afford to resettle these people.
He suggests conditions on Manus aren’t bad. In terms of the refugee safety, they [the detainees] have been very well looked after.
He says it is up to the Australian government whether they close down the centre or not.
But for his part, he’d like out of this arrangement.
At some stage of course, we need to close the centre. These people can’t remain on Manus forever.
Updated
at 2.11am GMT