Mr TARZIA (Hartley) (15:13): Our forefathers have fought so hard for the land that we live in, of opportunity, of equal opportunity, where we have the right to own property, to invest and to build wealth, and to progress so that we do not have to depend on government if we do not need. Federal Labor has recently announced a policy that will hurt everyday South Australians who are having a go. So many families in my electorate, and across the state in fact, have come to Australia with nothing, have made sacrifices, invested and built wealth through investment in property. Federal Labor recently announced a policy that would see an increase in rental prices and a decrease in housing investment.
This is an attack on the aspiring; it is an attack on the middle class. Federal Labor's proposal to limit negative gearing to new housing would hurt Australian families, investors and those renting properties. Removing future access to negative gearing by investors in established dwellings would lead to lower dwelling construction, restrict housing supply and ultimately produce higher rental yields. South Australians looking to rent could expect a sharp increase in rental prices, while there would be a decrease in housing development, hurting potential investors. Adelaide tenants would feel the biggest impact, with an expected increase in rent of over $1,500 per year, and this 10 per cent increase will hurt the pockets of the approximately 25 per cent of South Australians who currently live in rented homes.
It is careless of federal Labor to announce this policy at a time when South Australian households are suffering from housing stress. This federal Labor policy will discourage development, as investors would be less inclined to invest in the rental housing market as a result of lower expected returns. If this policy were to be implemented, more than 72,000 fewer dwellings will be built in Australia every year. This amounts to 175,000 fewer jobs being created nationally over the space of a decade.
At a time in which South Australia unfortunately boasts the highest unemployment rate in the nation, this policy would only worsen the jobs crisis we have in this state. So, what can South Australians expect from federal Labor's proposed change in negative gearing rules? Well, it is simple: a higher cost of renting for the average tenant, discouragement of investment, and a hit to developers—developers that would otherwise contribute over $1.5 billion in revenue from taxes.
As it stands, negative gearing gives ordinary Australians (including ordinary South Australians) the opportunity to get ahead. This is an attack by federal Labor on the middle class and on the aspiring middle class. This proposed Labor policy will be toxic for the South Australian economy, and it is about time that the South Australian government stood up to their weak federal Labor colleagues—
Mr Duluk: Shame! Shame on the Labor Party!
The DEPUTY SPEAKER: Member for Davenport, I can hear your voice over everything, and I would hate to have to give you a warning.
Mr TARZIA: The calculation is simple: to stimulate and grow our economy, we must tax less. If you want to hinder our economy, then tax more, and that is what federal Labor are proposing. One of the keys to South Australia's success moving forward is to encourage investment, entrepreneurship, innovation, and, by virtue, create more jobs. That is what we are here to do: create more jobs. That is what this government has not done. We are nowhere near the 100,000 jobs promise that they delivered so many moons ago.
I am sure that if the federal Labor Party takes this toxic policy to the polls later this year, the Australian people and the South Australian people will reject this toxic reform and choose policy that encourages investment and creates more jobs, not punishes those that are having a go.