Transcript No. 99/87

TRANSCRIPT OF

The Hon Peter Costello MP

TREASURER

Doorstop Interview

Tuesday, 16 November 1999

9.30 am

E&OE

SUBJECT: Business Tax, Negative Gearing, Labor’s Position

Do you have any legitimate complaints about the taxing trusts with regard to the

farmers and their complaints about business tax?

Oh well, the Government’s policy has been pretty clear in relation to business tax

generally and trusts in particular, and it’s been on the record now for quite some

time.

Okay. So will you be addressing any other complaints that the NFF has?

Well, we’ll be having discussions. We always have discussions, always free for

discussions.

How do you feel about the Democrats basically trying to cut the concessions for

negative gearing?

Well, that was tried in the mid-1980’s and it failed, so you wouldn’t return

to that.

Is it something you’d consider? Is it a proposal that you’d consider from the

Democrats?

Well, the changes in relation to negative gearing on property occurred in the

mid-eighties and they were such a disaster that they were abolished shortly thereafter.

So, I don’t think you’d be going down that track again because what it did is,

it basically dried up rental properties and meant that people who couldn’t afford to

buy their own homes either faced higher rentals or couldn’t get any accommodation.

So, the policy has been tried and it didn’t work once, you wouldn’t go down the

same track again, I don’t think.

So do you hope to achieve or come to any kind of compromise with the Democrats today or

do you think, have they been sidelined by Labor coming to the party and saying

they’ll negotiate?

Well you see, the Labor Party’s been running around saying that it wants to be

relevant on business tax reform. It’s been saying that now, I think, for a year. And

now is the time for them to make a decision. The thing about the Labor Party is

they’ve got to be able to make decisions. You’ve got to have ticker. You’ve

got to be able to make decisions. Mr Beazley said yesterday, he’s happy to support

business tax reform. He’s been saying that now for perhaps a year, but he never

actually gets to the point of saying, he’s going to vote for it. What he needs to do

is to show some ticker, show he can make a decision, and support business tax reform. We

can’t have this day in, day out, I’m going to make a decision shortly. I really

want to be relevant, he says, let me support it. But he never actually gets to the altar,

Mr Beazley. He’s got to do it.

Thanks.