Great to see from Australia’s next Prime Minister:
The federal government’s campaign against Labor’s proposed changes to the negative gearing tax break is aimed at distracting Australians from its own shortcomings, Opposition Leader Bill Shorten says.
Mr Shorten says the government is trying to hide that the economy is not working in the interests of everyday Australians.
“The current government is pulling a sort of pea and thimble trick, where they want you to look over here at Labor’s future policies so as to take your attention from the fact that under the current government this economy is not working properly,” he told reporters in Brisbane on Thursday.
Labor wants to retain negative gearing only for newly-built homes – with the policy grandfathered so the changes won’t apply to existing investors – and make changes to capital gains tax.
The coalition says the move would be “bad policy” that would reduce the value of people’s homes and raise rental costs.
But Mr Shorten says it’s simply a “fairness measure”.
“I haven’t heard anyone explain to me how it is fair that a property investor can get their taxpayers to subsidise that person for their seventh house, but a first home buyer, well, they get no help at all,” he said.
1 July 2020 is shaping up as the likely date for when Labor’s policy would take effect.
