Poor old Slomo.
It was only a couple of years ago he was arguing within his party to rein in the “excesses” in negative gearing, only to be rolled by his Cabinet.
But now in a last ditch desperate bid to save his failing Government he is at it again peddling lies about Labor’s negative gearing reforms.
Today the Prime Minister has told the Daily Telegraph that Labor’s negative gearing policy will “torpedo” and have a “massive impact” on the housing market.
This follows his claims when he was Treasurer that negative gearing would take a “sledgehammer” to the market, a statement directly contradicted by his own Treasury department that said “the price changes are likely to be small”.
The problem for our new Pinocchio Prime Minister is that the experts are now lining up to slam these claims.
Just today respected housing market analyst Martin North of Digital Finance Analytics has called Morrison’s comments “alarmist”.
In one of the most stinging rebukes to Mr Morrison’s credibility Martin North goes on to say that “Morrison is, I think, trying to deflect attention away from five years of bad housing and economic policy” and “This is playing politics, not dealing with the core issues we face, which is how we manage the mortgage debt bomb, as mortgage stress rises”
Ouch. The truth hurts.
Morrison can’t escape the facts that the record of his government over the last 5 years is a housing affordability crisis and record household leverage, Australia now with the second highest household debt in the OECD.
Labor’s reforms to negative gearing and the capital gains tax discount are responsible, fair, well calibrated, and fully grandfathered.
They will help put first home buyers back on a level playing field, will take some of the load off APRA macro prudential policies and over time will ensure that tax system doesn’t encourage excess leverage which puts Australia’s macroeconomic stability at risk.
Poor old Slomo.