Turnbott contradicts himself again on negative gearing
The contradictions from Malcolm Turnbott have continued today, arguing in parliament that Labor’s proposed changes to negative gearing and the capital gains tax discount would somehow simultaneously “crash housing prices” without improving housing affordability. From The Australian:
Mr Turnbull told a joint meeting of Liberal and Nationals MPs on Tuesday that Labor’s policy would do nothing for housing affordability, which was mainly due to a lack of supply and delays in development approvals.
More than one-third of new loans were made to housing investors and it “beggars belief” that taking those buyers out of the market would not impact on housing values.
“To crash housing prices would be very damaging to the economy,” he said.
“(The ALP’s policy) would represent a very significant shock to the largest single-asset class in Australia.”
Now compare Turnbott’s affordability claim against deputy leader, Barnaby Joyce’s, comments over the weekend:
Mr Joyce said… Labor’s policy to restrict negative gearing to new properties will make houses more affordable… What they [Labor] say is correct, houses are going to be more affordable, but naturally enough, people who own those houses are going to be losing equity.”
Seriously, you cannot make this stuff up.
Note to Turnbott: Labor’s policy would help to improve supply by channeling investment into new construction. It is also disingenuous for you to complain about “lack of supply and planning delays” – a state responsibility – when it is the federal government that keeps pumping the nation full of migrants at the same time as it slashes funding to the states.
If you are so concerned about dwelling supply, DO SOMETHING ABOUT IT!
