Negative gearing was in the headlines again this week after official documents
revealed that treasurer Scott Morrison was advised Labour's proposed overhaul
would only have a modest impact on property values.
now that's in direct contradiction to the government's claims that any
changes to negative gearing would smash Australia's housing market the ALP 's plan
to restrict the tax deduction along with having capital gains tax discount was a
major issue during the last election campaign. To discuss this and the
other big stories of the week we're joined by Assistant Minister for Social
Services and disability Jane Prentice from Brisbane and in the studio here
with us Labor MP Emma Husar . Good morning. Good morning welcome to you both, thank you very much
Emma let's begin with this issue of negative gearing because of
course as we mentioned it was some a big campaign item for the last election
we're seeing more revelations this week around the government's approach of
course we're also seeing more of what Labor thinks should be done so just
just fill out for us what when you think the issue is and how this will impact on
housing affordability.Well of course we've got a situation now where
homeownership is that the lowest that its ever been in the history of our country,
we've got wealthy property investors and speculators buying up all of the stock
that first-time owners or first-time buyers should really be taking up we
have the most generous tax concessions on property anywhere in the world so
it's not a surprise that people are using that loophole it's quite lucrative
but our policy is to restrict that negative gearing on properties that are
already in existence we want to see people stimulate the housing market by
using those tax concessions where we need it which is in new housing stock so
we took our policy to the last election, of course it was done you know
it was a little bit controversial we let the Australian people you know debate it
but we've got an extraordinary situation now where the government has actually
hidden this information for the last two years from the Australian public and
treated them like they're a bunch of mugs or they're not smart enough to make
up their own mind which is really quite disappointing for for a number of
reasons but most of all just how out of touch this government really actually is.
but can you understand the trepidation perhaps if you are a property investor
in particular as the government says, not everyone who takes use of of
negative gearing is wealthy, there's quite a lot of people middle-class
people who use it as a wealth creator there is a fear that this will cut into
to rising house prices and people might not be too attracted to that. I think
that those people who are using it and have used it so far as a way of you know
providing for their retirement income, we've put grandfathering provisions in
that policy so those people won't be affected we're not saying we're gonna
stop it we're saying just direct it in the area that it needs to be directed
into. Having such generous tax concessions for people I I think
personally it's a form of middle-class welfare you know you've got someone
that's renting but paying their tax they're also paying more rent to a
landlord they're being double dipped on so I think that it's it's a fair it's
it's a fair policy and it will actually benefit 76 percent of Australian
households and that's an extraordinary number of people to make a positive
impact on.
So Jane Prentis, has the federal coalition government also the New South Wales Liberal government where we're hearing they're we're hearing that they've basically
either been ignoring or misstating in terms of Treasury advice that's been
given on the issues, is the government just essentially ignoring the issue? Well
no they're not ignoring the issue and the reality is that that report is two
years old and the report doesn't say it won't have
an impact the discussions around the amount of the impact we need to realise
that over a million Australians benefit from negative gearing over two-thirds of
those sixty-seven percent earn less than $80,000 a year
these are Australia's battlers these are our hard workers these are people trying
to get ahead these are the people who are going to be affected another 11
percent earn less than a hundred thousand they're not wealthy they're not
speculators these are the people who will be impacted by Bill Shorten 164
billion dollar tax impost on this market which is what he's proposing.
Do you say accept the fact, to stop you there Jane Prentice, that the government may have
overstated the impact when it says things like smashing the housing market
and things like that to describe Labor's policy? Well if Bill Shorten
imposes a hundred and sixty four billion dollar tax on the
property sector it will smash it and that's the problem we have.People need
to understand what the impact will be the slightest change to this sector
really does have a major ripple effect and it's terribly important that we
support the Mum and Dad battlers out there who are trying to get ahead who
work hard save their money and invested in property more than two-thirds of
Australians invests their wealth in property in Australia and we need to
make sure that that market is stable so they can be confident of their
investment and they can plan for their future in their children's future I
think the only thing that's really been smashed out of all of these is actually
the government's credibility if you want to hide documents for two years and not
provide them and not put them on the table I think that's the only thing
that's actually being smashed what about Jane predators point they're about
stability I mean a lot of people have invested in housing because of these
rules and they expect them to stay there when you feel around with these types of
rule changes aren't you damaging investor confidence well that's why we
put the grandfathering provisions in there we made sure that those people who
had invested it for those reasons and with that in mind that those people were
protected that they could continue to do that for the lifetime of their property
and that that their investment would continue to do exactly what they had
planned for it to do so I think the grandfathering provisions were a great
part of the policy I think you know restricting it to only new homes is
another you know great part of the policy and we're not saying that you
know Jane Jones quoted 85% of people that are at that lower income bracket
we're not saying they can't do it just do it where we need it. so Jane what then
is the answer? because we are seeing a situation where housing affordability,
particularly particularly for people trying to get into the market is, I mean
it's clearly an issue. so how do we correct that? well we're making some real
changes that will benefit everyone including tax incentives for young first
homeowners to invest some of their superannuation in their home we've given
incentives to older people to downsize to free up some of the market available
to people in sort of more of the established suburbs and we're also
looking at free up land so we can actually build more products so the
coalition government is actually delivering real change
to actually facilitate people into new homeowners. Home ownership under our policy
would actually increase by five point five percentage points so if we're going
to talk about actually making a real difference well five point five percent
percentage points is a massive jump and puts us back where we were probably
twenty or thirty years ago in terms of people actually able to buy and afford
our own homes. And I think that that figure comes from particularly the lower
end if you like of the income bracket but also as a caller if that does that
is accepting the fact that people who do own homes at the moment can and should
prepare themselves under your policy for lower prices and their investment will
be damaged. I think that the modeling has shown that it would have a
slight impact on property prices but that it wouldn't be significant All
right well let's move along to another issue which of course some has been
gaining ground around the world and that's the #metoo discussion
that's been had of course Jane Prentice we've also had a spotlight cast on that
with the Golden Globes awards ceremony is this just a symbolic moment do you
think or is there a game-changer moment happening here? well I think it is a
societal change as we do over generations
things that were accepted now thirty years ago people are now standing up and
speaking up about it not being acceptable you know David Morrison
famously said the standards you walk past as the standard you accept and
we've got to make very sure that we don't accept the behavior that it seems
to be endemic throughout some sectors we also need to be very careful I believe
to make sure that we maintain the presumption of people to innocence until
proven guilty no trial by social media perhaps is not acceptable but equally it
has highlighted an issue and and no doubt good has come from it but I think
there needs to be a balance in it all. We have seen some local of examples of some
of these allegations we were speaking before about allegations are only
against Craig McLaughlin we've also heard obviously about about Don Burke
should people in Parliament begin to speak out about the
sorts of issues and other community leaders? do we need to see a bigger
movement here in Australia against these kind of activities? yes well I think
politicians do tend to speak out is it's definitely gained more notoriety now
it's on social media I think it's important for management to take people
seriously it's a bit like the domestic violence situation you know ten years
ago when a woman would say I know I've been you know assaulted and people oh I'm
sure he didn't mean to and and I think that's the most important thing we can
do is say we believe you we hear you and management should be doing something
about it if it's reported to them. And Emma you've got, I hate to bring this up at some
deep personal experience with some of these issues at the at the extreme end
what are your thoughts on the situation here in Australia and and around the
world? I think speaking up is always you know favorable and people
being able to feel safe to do that I think that there are a lot of men around
the world that have probably been having a bit of a hard look at themselves in
the mirror and potentially running back over a few scenarios where they probably
have acted maybe inappropriately the power imbalance and the power structures
that we've come to know as women lead us into this space where we are more
vulnerable but I think the 'metoo' phenomena or the hashtag that's been trending is
actually not just looking specifically at the abuse of power but also looking
about other things where we are disadvantaged so the gender pay gap
women's representation in boards and in powers of in positions of power so I
think it's not just isolated to this one thing I think actually that it is going
to gain momentum for all the things that women have been fighting for far far far
too long when you look at Hollywood it's a socially progressive industry where
you would expect these things not to happen we're still you see men at the
top of that the large companies do you think that perhaps changing that gender
issue of that at the very top of even progressive companies like in Hollywood
would fix a lot of these issues absolutely um if we're not having a seat
at the table with these discussions then no one's there to call out or could Paul
behavior no one's there to call out inappropriate actions no one's there to
represent the voices of the other 50% of the population so I think that it is
incredibly important that we keep making those steps towards a gender
equal society and culture at wherever we are in the world and I think that then
we will see things like the #metoo campaign not needed.
Well Jane just pointing to one of the key moments I think of the Golden
Globes award ceremony which was Oprah Winfrey's acceptance speech for the
Cecil B deMille Award for outstanding contribution to to the world of entertainment.
Three standing ovations during that event we've had people clamouring for her to
put a hand up to run for the US president so that does actually um lead
us to think about what is the correlation I suppose between this
movement and issues around people in power when we consider that the current
president is Donald Trump who has something of a very interesting 12
months in the top job there do you think Oprah Winfrey should run for US
President well it's a great thing about democracy isn't it anyone can run and of
course Ronald Reagan was very successful former president and former Governor of
California so America definitely have a track record for attracting celebrities
to the top job. Could you ever see a day Jane Prentice here in Australia where
we'd see a reality TV star up against a daytime talk show host for the top job
in Parliament? look nothing's impossible and I think in Australia we're probably
more prone to having sports stars that take on jobs you know look at Rick
Charlesworth transition from Celebrity sports star to Member of Parliament
we've got Damian Drum one of our great footballers there at the moment I know
in Queensland if Jonathan Thurston ever wanted to run for anything I'm sure he'd
be elected. Not sure which side he'd be running for of course though. It wouldn't matter with JT. And does it also point to that
moment we've also been talking about where populism in politics Emma has
really we've seen a surge in that not just around the world but also here
Australia? I think that we have a situation where politicians are seen as
out of touch and completely distorted from the reality of everyday life I mean
you know you've got a government hiding documents for two years people want to
see people in power who they can trust and who
like themselves they want to see them reflected back making decisions for for
their lives so I think if Oprah ran for President I think it's not about who
she is but about the morals and the values that she brings to that job and
diverse Parliaments and with all kinds of interests represented or okay with me.
Well it has been.. I always find that interesting you sometimes get
politicians who want to be celebrities I mean who can forget that great speech by
Albo where he delivered the lines from the American President that time so
sometimes see it in reverse as well. I think we probably need a comeback from you there Emma. Not one side of politics only there.
Oh look pop culture reference isn't my my forte but I think that we like to
think of ourselves as being fairly in touch. I can give you a great 'Tay Tay'
pop culture reference or you know but look I think politicians don't always
seek to be celebrities.. From time to time you get a few that are a bit
like that but I think Albo's fine. Alright well we look forward to the
year ahead of us not just the one that was it's always great to have you both
with us Jane Prentice and Emma Husar. Thank you. Thanks guys for having us.
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