Documents released under Freedom of Information overnight reveal the Treasury has recently advised the Turnbull Government the benefits of both negative gearing and the Capital Gains Tax discount flow overwhelmingly to high income earners.
“…negative gearing benefits high income families, with 52.6 per cent of the tax benefit going to the top 20 per cent of incomes and only 5.2 per cent of tax benefits going to the bottom 20 per cent of incomes.”
This revelation completely demolishes the shrill and untruthful scare campaign being run by Malcolm Turnbull and Scott Morrison.
These documents reveal the Liberal Government knew their scare campaign was completely untrue.
They show the Treasurer of this country has concealed information which vindicates Labor’s responsible policies and destroys his own scare campaign. His credibility has been shattered.
Scott Morrison has been traversing the country over the last few months claiming the benefits of negative gearing somehow flow to low and middle income earners – but his own department had advice clearly showing the benefits of negative gearing overwhelmingly flow to high income earners.
It’s a scandal the Treasurer would hide this from the Australian people.
It’s a disgrace the Prime Minister would then choose to repeat his Treasurer’s falsehoods.
Malcolm Turnbull and Scott Morrison must come clean today on when they received this advice, and why it was hidden from the public.
They have misled the Australian people. They should apologise for their falsehoods and admit they were wrong.
This revelation is the final blow to Scott Morrison’s economic credibility.
He was recently caught out trying to direct his mates in the property sector to write reports attacking Labor’s policies.
Before that, his much trumpeted BIS Shrapnel report blew up in his face.
These Treasury documents confirm what Labor has long been arguing – negative gearing and capital gains largely benefit higher income earners.
This analysis supports work by the independent Grattan Institute, which shows before rental deductions, the top 10 per cent of income earners receive almost 50 per cent of the benefits of negative gearing.
There’s no greater aspiration than a young family trying to buy their own first home.
We face a housing affordability crisis in Australia and Labor is the only major party prepared to do something about it.
It’s two weeks to polling day and Malcolm Turnbull and Scott Morrison have yet to announce a housing affordability policy.
If we are serious as a nation about housing affordability we must tackle reform of negative gearing.
Only Labor has a plan to put first home buyers on a level playing field with investors.
THE HON CHRIS BOWEN MP
MEMBER FOR MCMAHON