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Prime Minister warns against Labor’s proposed negative gearing plan

Prime Minister Scott Morrison has warned Australia’s Triple-A credit rating is at risk under Labor’s changes to negative gearing and capital gains tax.

Labor has proposed limiting negative gearing tax breaks to new homes and a reduction in the capital gains tax discount.

Shadow treasurer Chris Bowen has dismissed the economic modelling commissioned by Master Builders Association, saying Labor was not planning to end negative gearing.

But Deloitte Access Economics Chief Economist Chris Richardson says the policy won’t have a major ripple effect.

“There’s nothing in Australia bigger, dollar-wise, than our housing market.

“$7 trillion of market value and you’ve only got $11 billion, so one in 600 is the ratio, of negative gearing very year.”

Click PLAY below to hear the full interview 

Ross also spoke with Nick Scali CEO Anthony Scali.

The furniture retailer’s shares have dropped by 11 per cent within two weeks, partly due to potential problems with the slowing housing market.

Click PLAY below to hear the full interview with Mr Scali