Doorstop interview: Labor’s negative gearing reforms

CHRIS BOWEN, SHADOW TREASURER: Thanks for coming everybody.

 

It’s been a horror week for the Liberal Party’s scare campaign on negative gearing.

 

The week started with the release under Freedom of Information of Treasury advice telling the Government, the Prime Minister and Treasurer, that their scare campaign on negative gearing, that it would cause a ‘crash in housing prices’ was just that, a scare campaign, wasn’t true, false, a lie.

 

Then we had the release of the New South Wales Treasury advice asking Gladys Berejiklian to lobby the Federal Government for reforms to negative gearing to help with housing affordability.

 

Then yesterday there was released as part of a Reserve Bank research process, research undertaking, a paper on what might happened if negative gearing was abolished entirely. Now of course that’s Labor’s policy, Labor’s policy is to reform negative gearing and to put it to work for Australians. Nevertheless it shows that this scare campaign that the world will end if negative gearing is in anyway touched or changed is just that.

 

It’s been disappointing this week to see Kelly O’Dwyer doubling down on these lies. The acting Treasurer doubling down on this pathetic, discredited, ridiculous scare campaign. It is time for the Government to act on housing affordability. It’s time for the Government to do something for the young people who are trying to get into the housing market. It’s time for the Government to repair the Budget and do something for financial stability by reforming negative gearing. Unfortunately, it will probably have to wait for an incoming Labor Government, but it would be good if they actually took it up.

 

Finally, before I take some questions, there are concerns today that victims are not having the opportunity to have their say before the Banking Royal Commission.

 

Now we know that the Government was dragged kicking and screaming in to having this Royal Commission. We know the Government was very reluctant to hold this Royal Commission, they said it was “regrettable”, they don’t really believe in the need for this Royal Commission.

 

Now I hope that victims of all banking and financial scandals are able to have a full and proper accounting before the Royal Commission. Our party has no criticism of the Royal Commission but it is appropriate that he be properly resourced and that all people with any concerns about banking and financial services are able to have their say.

 

There are more concerns out today about gouging through foreign transaction fees. These are the sorts of issues that the Royal Commissioner should be able to hear from all Australians on and not just have conversations amongst banks and financial service providers.

 

Happy to take any questions.

 

JOURNALIST: Why do you think the Liberal Party still oppose negative gearing reform?

BOWEN: Well of course we announced and adopted our policy to reform negative gearing two years ago. Two years ago. We took it to the last election and we will take it to the next election. The Government at first said it wouldn’t raise enough money and then they came up with this ridiculous scare campaign about house prices.

 

It’s up to the Government to explain why they won’t do what expert after expert has been calling on the Government to do. Whether it’s the Reserve Bank who we know have concerns, international think tanks have concerns, the Grattan Institute has outlined the case. We have seen case after case of experts calling for negative gearing to be reformed. The only people who seem to think that negative gearing doesn’t need to be reform – that everything is just fine and is perfectly okay – are Malcolm Turnbull and Scott Morrison. It’s up to them to explain to the Australian people why they continue to act in the face of the evidence.

JOURNALIST: (Inaudible)

BOWEN: Clearly the Government thought they could have some sort of ridiculous scare campaign and the Australian people would believe them. Well they have failed in that scare campaign. The Australian people have seen through the lies and misinformation that Malcolm Turnbull has in his shrill and ridiculous fashion, put out there about negative gearing.

 

Right around the country, parents and grandparents are worried about how their children will afford to get into the housing market. Right around the country, people know that fixing negative gearing will be good for the Budget and good for financial stability with record household debt. This is a reform which is necessary and I fear it will come to a Labor Government to introduce these reforms.

JOURNALIST: (Inaudible)

BOWEN: Yes, and again, we have seen study after study…(audio cuts out)…they need serious reform and negative gearing reform is that serious reform.

JOURNALIST: (Inaudible)

BOWEN: Well again, this is a Minister, Kelly O’Dwyer, who said that house prices would go up, is now claiming that house prices would go down. Minister O’Dwyer said that we would increase house prices right around Australia if we reformed negative gearing. This Minister has no credibility, zero credibility, when it comes to negative gearing. What negative gearing reform would do is take the heat out of the housing market and put a more level playing field in place for first home buyers, change the mix for purchases of housing and give people a chance.

JOURNALIST: (Inaudible)

BOWEN: That’s a matter for the Government to deal with. I simply say as Shadow Treasurer, that any Australian who has concerns about the banks, who has been a victim of banking scandals, should be able to, expeditiously, properly, appropriately, have their say before the Royal Commission. That is vital, absolutely vital. Now the other thing is that the Government has been very quick to put mechanisms in place like for submissions, etc, for other royal commissions. Again, we have no criticism of Justice Hayne or the Royal Commission, but it is absolutely vital if this Royal Commission is to have credibility that victims have their say.

 

Okay, thanks.