Prime Minister Malcolm Turnbull has advocated that rich Australian parents must not hesitate to involve their kids into real estate dealing and should buy them a house.
Turnbull defended his comment, saying that helping children buy expensive houses to boost the real estate market allows them to learn in making wise investments in property deals. The Opposition Labor party criticised the prime minister’s comment and called him as “out of touch.”
On the ABC Radio program, Turnbull had a conversation with Melbourne host Jon Faine on Wednesday where the latter asked him about his negative gearing policy after Treasurer Scott Morrison’s first budget revelations. “It’s [negative gearing] created conflict with effectively the kids of your and my generation who can’t get into the market and they’re saying: ‘For goodness sake, you baby boomers, you just want everything and you’re locking us out,'” Faine said.
“Are your kids locked out of the housing market?”Turnbull asked. “Well, you should shell out for them. You should support them, a wealthy man like you,” Turnbull said, following an affirmative reply from the presenter on his question. The prime minister told Faine that the solution was in the hands of the rich Aussies.
Opposition Leader Bill Shorten lashed out on the prime minister’s comment during Question Time on Wednesday. “Is that really the prime minister’s advice for young Australians struggling to buy their first home – have rich parents?” Shorten asked as quoted by the Daily Mail. “Just how out of touch are you?”
Turnbull attacked Shorten back by saying their notion against what he said expressed their strategies against aspiration and ambition. This way of thinking might not ever take Australia to a better economic position.
The Sydney Morning Herald cited a similar example of former Treasurer Joe Hockey whose downfall started as soon as he made a negative comment on the low earning group of Aussies, saying poor people don’t drive cars.