Finance minister Mathias Cormann has hit out at Labor’s proposed negative gearing policy, accusing shadow treasurer Chris Bowen of misleading Australians about its benefits.
Negative gearing is set to become a major focus of the next election, with a new poll by The Australian showing Labor’s policy still has the popular vote by 47 to 33.
Shadow Treasurer Chris Bowen argues that Australia’s weakening housing market has presented a good time to bring in some changes.
Speaking to TICKY, Cormann rejected any thoughts about the Liberal Party considering the policy.
“It’s a bad idea. Chris Bowen is just coming up with fancy language to whack Australian families with the higher tax,” he said. “All this is about is increasing the personal income tax of hard-working Australians.”
“What is negative gearing? Negative gearing is working Australians leveraging their existing income and the existing value of their assets to invest in new income-producing or capital-appreciating assets,” he said.
“It’s bad economic policy. We don’t support it,” he said, adding that it would “harm the economy,” “put jobs at risk” and “hurt working Australians.”