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You can find the current article at its original source at http://www.theguardian.com/australia-news/live/2016/mar/03/turnbull-government-seizes-new-negative-gearing-report-politics-live
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| Coalition on defensive as Labor attacks leak of classified material – politics live | Coalition on defensive as Labor attacks leak of classified material – politics live |
| (35 minutes later) | |
| 4.17am GMT | |
| 04:17 | |
| Further questions have been placed on the notice paper. Give me a minute to survey the landscape and I’ll be back with the afternoon. | |
| 4.12am GMT | |
| 04:12 | |
| 4.09am GMT | |
| 04:09 | |
| Have you ever wondered whether there was more to life than being ridiculously good looking? | |
| The prime minister: | |
| I have never heard of a proposal to deal with negative gearing beyond the residential housing sector. Maybe there have been. I’ve not seen them. This proposal is a dramatic, extensive attack on the entire Australian economy. | |
| The agriculture minister, Barnaby Joyce: | |
| This one is truly Zoolander economics. What do we do with things such as margin lending? What do we do with things such as negative gearing on housing? How do we deal with partnerships? | |
| How does this economy work under this form of Zoolander economics? | |
| 3.59am GMT | |
| 03:59 | |
| Turnbull, continuing. | |
| What the opposition is doing is proposing that there can be no negative gearing in respect of any other asset class, including shares and any assets other than new residential property. | |
| Mr Speaker, we know the Labor party hasn’t modelled the impact of their policy on housing. Nobody would have ever modelled this proposal because it is so inconceivable, so reckless! | |
| What possible relationship to housing affordability does a person’s capacity, under normal income tax principles, to negatively gear an investment in shares or some machinery or a vehicle? | |
| 3.57am GMT | |
| 03:57 | |
| What we are not going to do is make policy on the run. | |
| (The prime minister in answer to a question about whether he’ll rule out adjusting super taxes as part of the tax policy.) | |
| 3.55am GMT | |
| 03:55 | |
| 3.53am GMT | 3.53am GMT |
| 03:53 | 03:53 |
| Malcolm Turnbull, undeterred: | Malcolm Turnbull, undeterred: |
| 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. | 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. |
| 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. | 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. |
| 3.50am GMT | 3.50am GMT |
| 03:50 | 03:50 |
| Malcolm Turnbull: | Malcolm Turnbull: |
| Let me detail Labor’s negative gearing policy .. | Let me detail Labor’s negative gearing policy .. |
| Chris Bowen: | Chris Bowen: |
| You might as well detail Labor’s because you can’t detail your own! | You might as well detail Labor’s because you can’t detail your own! |
| 3.47am GMT | 3.47am GMT |
| 03:47 | 03:47 |
| Just letting you know. | Just letting you know. |
| #BREAKING: Fair Work Commission Vice President Michael Lawler has resigned from the commission effective immediately. | #BREAKING: Fair Work Commission Vice President Michael Lawler has resigned from the commission effective immediately. |
| I’ll come back to this when time permits. | I’ll come back to this when time permits. |
| 3.44am GMT | 3.44am GMT |
| 03:44 | 03:44 |
| Labor’s Kate Ellis. | Labor’s Kate Ellis. |
| 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? | 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 goes to his critique of the policy. | Malcolm Turnbull goes to his critique of the policy. |
| 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. | 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. |
| 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. | 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. |
| The scale of this disruption is enormous. | The scale of this disruption is enormous. |
| 3.39am GMT | 3.39am GMT |
| 03:39 | 03:39 |
| I suspect this breaches the no props rule. | I suspect this breaches the no props rule. |
| 3.38am GMT | 3.38am GMT |
| 03:38 | 03:38 |
| Dorothy Dixers have trended back now to terrible unions and how much Labor loves terrible unions. | Dorothy Dixers have trended back now to terrible unions and how much Labor loves terrible unions. |
| 3.36am GMT | 3.36am GMT |
| 03:36 | 03:36 |
| 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. | 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. |
| 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? | 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? |
| These are all reasonable questions. But the government keeps muffling its legitimate critique with silly overstatement and over-reach. | These are all reasonable questions. But the government keeps muffling its legitimate critique with silly overstatement and over-reach. |
| 3.29am GMT | 3.29am GMT |
| 03:29 | 03:29 |
| Shorten again. | Shorten again. |
| 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? | 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? |
| Malcolm Turnbull outlines his critique of Labor’s policy. He finally winds round to BIS Shrapnel. Labor’s policy is .. | Malcolm Turnbull outlines his critique of Labor’s policy. He finally winds round to BIS Shrapnel. Labor’s policy is .. |
| ... so much worse than that contemplated by BIS Shrapnel. | ... so much worse than that contemplated by BIS Shrapnel. |
| Nobody – no-one could have imagined such a reckless assault on Australia’s economic freedom as this! | Nobody – no-one could have imagined such a reckless assault on Australia’s economic freedom as this! |
| 3.24am GMT | 3.24am GMT |
| 03:24 | 03:24 |
| Michael Safi | Michael Safi |
| Back briefly to Bert Van Manen and life insurance. A spokeswoman for Van Manen has now confirmed the Queensland MP is opposed to bolstered regulation for the life insurance industry – including the scaling back of up-front and ongoing commission payments. | |
| “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.” | “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.” |
| 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. | 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. |
| Updated | |
| at 4.02am GMT | |
| 3.22am GMT | 3.22am GMT |
| 03:22 | 03:22 |
| 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. | 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. |