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Negative gearing abolition and capital gains tax - contradictory and illogical



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U S

MEDIA RELEASE SENATOR TONY MESSNER

SHADOW MINISTER FOR FINANCE AND TAXATION

THE SENATE 24/85

NEGATIVE GEARING ABOLITION AND CAPITAL'GAINS TAX - CONTRADICTORY

"If evidence is needed to convince us that the Keating Reform of Australian Taxation System (RATS) is nothing but good old fashioned business bashing dressed up as a confusion of conflicting proposals, one needs look no further than the abolition for tax purposes of negative gearing and concur­ rently the introduction of a capital gains tax".

Speaking at the National Seminar of the Metropolitan Municipal Association in Melbourne, Senator Tony Messner, Shadow Minister for Finance and Taxation, said today the Keating package was unlikely to produce the results of reform which the Labor Govern­ ment presently proclaim.

"It is increasingly clear, for instance, that 18,000 jobs for young - not old - people will be lost in the hospitality industry, at a time when the Government is spending millions

of dollars on its Priority One Campaign to stimulate jobs for young people",

"And the Government will get only $79m rather than the $310m It has claimed from abolishing deductions for legitimate business

entertainment expense.*

"But there is probably no more breathtaking leap into stupidity

than to firstly:

. justify its action in abolishing negative gearing on the

grounds of there being no capital gains tax, and then in contradiction of its own logic - .

. introduce a capital gains tax and leave the negative

gearing decision in place

AND ILLOGICAL

/ 2

REPRESENTING IN THE SENATE THE SHADOW TREASURER AND SHADOW MINISTER FOR IMMIGRATION AND ETHNIC 'AFFAIRS v

2

f

"This is plain nonsense and will hurt low income earners as

private housing rentals rise.

"The Coalition is opposed to capital gains tax and will repeal

it upon re-election to Government"„

ADELAIDE 31 OCTOBER 1985

Contacts

Senator Tony Messner (08) 213 2240