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Bill Shorten has stood firm on his party’s negative gearing policy as he delivered a response to the Liberal government’s budget on Thursday night, outlining what the Labor party plans to deliver as part of an alternative budget before the upcoming May election.
If there was any slim chance the Labor party would rethink its stance on negative gearing before today, Mr Shorten’s speech on Thursday night removed any doubt from backing down on his party’s stance to remove negative gearing for buying existing properties.
In his speech, Mr Shorten claimed negative gearing was standing in the way of young Australians owning property.
“If you’re currently negatively gearing, the rules won’t change. If you want to use it on new homes, you still can. But you cannot have property investors playing with loaded dice against our young people, Generation Y and the Millennials,” Mr Shorten said in his speech.
“Instead of patronising millions of young Australians with lectures about cutting back on smashed avo, why don’t we tell them the truth? Getting together a 20 per cent deposit plus stamp duty is much, much harder than it was 20 or 25 years ago.
“And it is even more difficult when your government uses your taxpayer money to subsidise the property investors bidding against you.”
He said that the intergenerational bias established in Australia’s tax system needs to be called out, and that a Labor government would “stop the bias against first-home buyers and young Australians”.
Also included in Mr Shorten’s speech was Labor’s commitment towards infrastructure, outlining the various projects they would fund if elected.
Those projects are planned to be:
Additionally, the promises Mr Shorten also said he planned to commit towards that could most impact property investors included:
“In conclusion, my fellow Australians, I suspect that some in the government will spend a lot of time telling you to be afraid – afraid of change, afraid of new ideas, afraid of the future, afraid of each other. I expect we’ll see more of that in the campaign ahead,” Mr Shorten said.
“I have a different view. I’m optimistic about our nation’s future because this country has so much going for us: a continent to call our own, next to the fastest-growing economies in the world, and the resources to be an energy superpower.
“We have the skills, the science and the get-up-and-go to create new industries. Best of all, we have our people. Australians are hardworking, caring, brave, smart and generous.”
Budget is defined as the estimation of expenses made over a specified time for the purchase of goods or services.
Gearing is defined as the relationship between debt and equity of a company that shows how much of its operations are financed by lenders or shareholders.