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| Version 1 | Version 2 |
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| Scott Morrison says Labor 'selling a unicorn' with negative gearing savings | Scott Morrison says Labor 'selling a unicorn' with negative gearing savings |
| (7 months later) | |
| The treasurer, Scott Morrison, has dismissed claims of an eventual $7bn yearly budget boost from Labor’s negative gearing package as “a unicorn”, implicitly casting doubt on estimates by the independent parliamentary budget office. | The treasurer, Scott Morrison, has dismissed claims of an eventual $7bn yearly budget boost from Labor’s negative gearing package as “a unicorn”, implicitly casting doubt on estimates by the independent parliamentary budget office. |
| Morrison conducted a media blitz on Thursday, a day after a National Press Club address in which he called for curbs on new spending but also left the door open to some changes to negative gearing in the Coalition’s yet-to-be-decided tax package. | Morrison conducted a media blitz on Thursday, a day after a National Press Club address in which he called for curbs on new spending but also left the door open to some changes to negative gearing in the Coalition’s yet-to-be-decided tax package. |
| Labor has promised to target negative gearing, which allows people to use their net losses on investment properties as tax deductions against their other income. | Labor has promised to target negative gearing, which allows people to use their net losses on investment properties as tax deductions against their other income. |
| The opposition says the parliamentary budget office has found its policy to restrict the practice to new homes only, and halve the capital gains tax discount, would improve the budget by $31.1bn over a decade. However, just $565m of this would occur in the current four-year budget period because houses currently owned would be spared from the impact. | The opposition says the parliamentary budget office has found its policy to restrict the practice to new homes only, and halve the capital gains tax discount, would improve the budget by $31.1bn over a decade. However, just $565m of this would occur in the current four-year budget period because houses currently owned would be spared from the impact. |
| Labor’s shadow treasurer, Chris Bowen, said on Thursday that the costings – which the party did not release – indicated the “structural reform” would deliver $7bn to the budget bottom line in 2025-26 and “this will continue to grow”. | Labor’s shadow treasurer, Chris Bowen, said on Thursday that the costings – which the party did not release – indicated the “structural reform” would deliver $7bn to the budget bottom line in 2025-26 and “this will continue to grow”. |
| In an interview with the ABC’s AM program, Morrison said he had criticised the Labor policy because he thought it would “penalise ordinary mum and dad investors who will get crowded out of their negative gearing opportunities by those on high incomes”. | In an interview with the ABC’s AM program, Morrison said he had criticised the Labor policy because he thought it would “penalise ordinary mum and dad investors who will get crowded out of their negative gearing opportunities by those on high incomes”. |
| When the presenter, Michael Brissenden, said the policy was projected to save $7bn a year after 10 years, Morrison replied: “That’s a unicorn.” | When the presenter, Michael Brissenden, said the policy was projected to save $7bn a year after 10 years, Morrison replied: “That’s a unicorn.” |
| The treasurer preferred to focus on the four-year budget period. “I’ve heard this ‘over 10 years’ and ‘over 15 years’ and all the rest of it,” he said. “It raises $565m after you’ve taken in the costs of implementing it and that does not cover one month’s interest bill.” | The treasurer preferred to focus on the four-year budget period. “I’ve heard this ‘over 10 years’ and ‘over 15 years’ and all the rest of it,” he said. “It raises $565m after you’ve taken in the costs of implementing it and that does not cover one month’s interest bill.” |
| Morrison continued the mythical creature theme when disputing the $100bn estimate of the total budget boost over 10 years from Labor’s savings and revenue measures, including changes to superannuation and multinational tax arrangements, increases to tobacco tax and the abolition of the Coalition’s emissions reduction fund. | Morrison continued the mythical creature theme when disputing the $100bn estimate of the total budget boost over 10 years from Labor’s savings and revenue measures, including changes to superannuation and multinational tax arrangements, increases to tobacco tax and the abolition of the Coalition’s emissions reduction fund. |
| “They are selling a unicorn to the Australian people – higher taxes for higher spending,” he said. | “They are selling a unicorn to the Australian people – higher taxes for higher spending,” he said. |
| Bowen said the savings from the negative gearing and capital gains package, beginning in July 2017, would start slowly because his party had made “the prudent choice not to change the rules for current property investments”. | Bowen said the savings from the negative gearing and capital gains package, beginning in July 2017, would start slowly because his party had made “the prudent choice not to change the rules for current property investments”. |
| He said Morrison and the Liberal party should “stop the attacks on the parliamentary budget office” – an entity that Malcolm Turnbull had called for in his budget reply speech when he was the opposition leader in 2009. | He said Morrison and the Liberal party should “stop the attacks on the parliamentary budget office” – an entity that Malcolm Turnbull had called for in his budget reply speech when he was the opposition leader in 2009. |
| At the time, Turnbull said an independent body modelled on the American congressional budget office “would contribute greatly to a better-informed debate about fiscal policy alternatives and the consequences of different choices and trade-offs”. | At the time, Turnbull said an independent body modelled on the American congressional budget office “would contribute greatly to a better-informed debate about fiscal policy alternatives and the consequences of different choices and trade-offs”. |
| Bowen said: “There is no more independent, credible and professional costings agency in Australia ... Now, apparently, they’re producing ‘unicorns’.” | Bowen said: “There is no more independent, credible and professional costings agency in Australia ... Now, apparently, they’re producing ‘unicorns’.” |
| The shadow assistant treasurer, Andrew Leigh, mocked the treasurer’s comments in a press release titled: “Labor applauds Morrison’s strong anti-unicorn trafficking stance.” | The shadow assistant treasurer, Andrew Leigh, mocked the treasurer’s comments in a press release titled: “Labor applauds Morrison’s strong anti-unicorn trafficking stance.” |
| Leigh said the “hard line on mythical creatures” was “entirely consistent with this Liberal government’s fantasy approach to budgeting”. | Leigh said the “hard line on mythical creatures” was “entirely consistent with this Liberal government’s fantasy approach to budgeting”. |
| Apart from his ABC interview, Morrison also spoke to the Nine Network’s Today program, the Seven Network’s Sunrise program and 2GB radio’s breakfast show. | Apart from his ABC interview, Morrison also spoke to the Nine Network’s Today program, the Seven Network’s Sunrise program and 2GB radio’s breakfast show. |
| He sought to defend the government’s handling of the goods and services tax issue, saying the changes were ruled out after months of debate because modelling showed the policy “didn’t stack up” economically. | He sought to defend the government’s handling of the goods and services tax issue, saying the changes were ruled out after months of debate because modelling showed the policy “didn’t stack up” economically. |
| Morrison said pressing ahead with an increase to the GST was not “some litmus test of tax testosterone” and the government would not “put some hairy-chested reform in because we’re looking for some medal”. | Morrison said pressing ahead with an increase to the GST was not “some litmus test of tax testosterone” and the government would not “put some hairy-chested reform in because we’re looking for some medal”. |
| He had a challenging exchange with the conservative broadcaster Alan Jones, who accused the treasurer of loading up his National Press Club speech with “cliches and slogans”. | He had a challenging exchange with the conservative broadcaster Alan Jones, who accused the treasurer of loading up his National Press Club speech with “cliches and slogans”. |
| Jones opened by asking: “Forgive me for asking a simple question ... what on earth was it about? You said absolutely nothing.” | Jones opened by asking: “Forgive me for asking a simple question ... what on earth was it about? You said absolutely nothing.” |
| Morrison replied that the speech was “about the fact that our economy is strong at the moment and Australia is the best place in the world to be at the moment in these very difficult global economic times”. | Morrison replied that the speech was “about the fact that our economy is strong at the moment and Australia is the best place in the world to be at the moment in these very difficult global economic times”. |
| “The way to ensure that continues is to keep spending under control and keep taxes low; that’s the way forward,” Morrison said. | “The way to ensure that continues is to keep spending under control and keep taxes low; that’s the way forward,” Morrison said. |
| “I’m not going to try to sell the Australian public a unicorn, Alan, and say that there’s really easy solutions here. You’ve just got to keep going at it, day in, day out, and that’s what we’re doing.” | “I’m not going to try to sell the Australian public a unicorn, Alan, and say that there’s really easy solutions here. You’ve just got to keep going at it, day in, day out, and that’s what we’re doing.” |
| Jones complained that Morrison had been treasurer for five months and “and we still don’t know what you’re doing on expenditure, we still don’t know what you’re doing on tax”. | Jones complained that Morrison had been treasurer for five months and “and we still don’t know what you’re doing on expenditure, we still don’t know what you’re doing on tax”. |
| Morrison countered that the broadcaster “mustn’t have read the Myefo statement last December where we announced billions of savings”, including a welfare debt crackdown measure that he thought Jones would like. | Morrison countered that the broadcaster “mustn’t have read the Myefo statement last December where we announced billions of savings”, including a welfare debt crackdown measure that he thought Jones would like. |