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Friday, February 19, 2016

Malcolm Turnbull warns property values will fall under Labor negative gearing policy

Date February 19, 2016 - 5:17PM 63 reading now James Massola Political correspondent View more articles from James Massola Follow James on Twitter Rob has been out of prison for over one year now and attends Glebe House. Since joing AA and NA he has also been clean ... null null Turnbull: 'Be afraid of Bill Shorten' The price of every home will be devalued under Labor's negative gearing policy, says Malcolm Turnbull. Courtesy: ABC News 24 Tackling inequality in Australia Home owners across the country will see the value of the family home "smashed" under Labor's "very blunt, very crude" negative gearing policy, Prime Minister Malcolm Turnbull has warned. In a blistering political attack on the opposition's policy, which was unveiled last weekend and which restricts negative gearing to new properties while also reducing capital gains discounts available to investors, Mr Turnbull warned " this should put concern into the minds of every single house owner". Malcolm Turnbull has launched a blistering attack on Labor's negative gearing plans. Photo: Edwina Pickles And in a clear sign the federal government is prepared to launch a massive scare campaign in the lead up to the 2016 election over the Labor policy, which is designed to save $32 billion over a decade, Mr Turnbull warned "Bill Shorten's policy is calculated to reduce the value of your home". "The Labor Party's negative gearing policy and its wind back on the capital gains discount – its increase in tax on capital gains – is a very dangerous one. It's been very, very poorly thought out," Mr Turnbull said. "The consequence of it will be a decline in property prices, every home owner in Australia has a lot to fear from Bill Shorten." But Opposition Leader Bill Shorten hit back late on Friday, describing the comments as "desperate stuff from a Prime Minister who has broken his promise to provide 'new economic leadership'." The Prime Minister's political attack stands in stark contrast to that of Treasurer Scott Morrison, who has endured a torrid week in a series of back-to-back speeches and interviews in which he has not revealed much in the way of new details about the government's tax plans, attracting much criticism. The Prime Minister said the Labor policy would effectively remove all would-be investors in existing properties from the market, leaving only people looking to buy a family home. That, in turn, would mean that up to 30 per cent of would be purchasers of a property would be removed from the market for existing properties and "if you do that, you obviously drive prices down". " If you are going to look at an issue like this, into negative gearing of residential real estate, you need to look at it very carefully. You need to use great care and attention, you need to use a scalpel, rather than an axe. What Bill Shorten has done is he has set out to smash the residential housing market." Pressed for details of the Coalition's negative gearing policy - it is said to be considering either a cap on the number of properties that can be negatively geared, or a cap on the total dollar amount that can be deducted - Mr Turnbull declined to give specifics. " We are not going to run our tax reform agenda in a political way, what we are looking at is a whole range of measures across the board. But I can tell you the big difference between our approach and Bill Shorten's is that we will think the consequences through." Mr Shorten said the Prime Minister had "promised to be better than Tony Abbott and respect people's intelligence - today he showed he is no better". "Labor's plan levels the playing field so first home owners can compete with investors, boost housing supply, while creating tens of thousands of new construction jobs. It makes the system fairer and means we can pay for investments in education and health." Read more: http://www.theage.com.au/federal-politics/political-news/turnbull-warns-property-prices-will-fall-under-labor-negative-gearing-policy-20160219-gmyq2k.html#ixzz40f8N2fCL Follow us: @theage on Twitter | theageAustralia on Facebook

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