Former NSW premier Dominic Perrottet calls for negative gearing back on table, slams ‘lazy economics’
In his first public appearance since election defeat, former NSW Premier Perrottet slams ‘lazy economics’ and the ‘Ponzi scheme’ of high immigration.
Former NSW premier Dominic Perrottet has called for negative gearing reforms to be put back on the agenda as a possible solution to the housing crisis.
In his first public appearance since last March’s state election defeat and moving to the backbenches, Mr Perrottet also said relying on high immigration rates to drive economic growth was “lazy economics” and a “Ponzi scheme”.
At a Sydney luncheon hosted by the Property Council of Australia on Thursday, the former Liberal premier said the housing crisis gave state and federal governments a chance to take a political risk.
“The society today is very different than it was 100 years ago, and the tax system that’s in place today is still reminiscent of that,” he said. “It could be changed in such a way that drives opportunity, and things like negative gearing should be looked at.”
Without taking a concrete stance on negative gearing, he urged for it to be put “on the table”.
“I’m not advocating one way or another (on negative gearing),” he said. “But I am saying it’s good government to go looking at this issue holistically.
“(Governments) should put everything on the table … (and) always look at what’s in front of them and ask: ‘Is this approach the right approach for the times we’re living in?’ ”
Mr Perrottet also urged the federal government to contribute more to state infrastructure, saying NSW and Victoria welcomed the majority of immigration arrivals but footed the bill for the services and infrastructure to accommodate them.
“The advantage of immigration is that it drives up revenue receipts or income tax, and it drives economic growth,” he said.
“But ultimately, it’s lazy economics, simply having immigration as a Ponzi scheme, just adding people, rather than driving productivity.
“I believe the federal government should be providing more infrastructure investment to the states. As a state, we pick up that tab … and the states should be receiving support”.
Late last year, the Albanese government announced it would reduce infrastructure funding to the states, prompting NSW Treasurer Daniel Mookhey in December to accuse it of “walloping” the state’s budget.
It comes as the NSW government went on the defensive this week over accusations from Sydney mayors that its density and housing push went too far, but also after it was revealed it would struggle to meet its housing targets both this year and within the National Housing Accord period.
Mr Perrottet said the state planning department should be put in charge of “driving every one of those other agencies” involved to deliver infrastructure, such as roads, sewerage and water infrastructure.
“I’m very concerned that my children will never buy their own place in Sydney,” he said.
Mr Perrottet made the comments while in discussion with former premier Bob Carr and Sky News host Laura Jayes.
Mr Carr used the function to urge the Minns government to go further on higher density housing, while slamming anti-development mayors as “out of touch” with public opinion.
“Their (the mayors’) own residents would find nothing objectionable about more tower development around major transport arteries,” Mr Carr told the luncheon.
More Coverage
Hypocrisy, bad taste and other follies of 2024
On New Year’s Day 2024, morale was relatively high since the Year of the Dragon was expected to usher in a time of rational thinking. Not quite how it worked out.
Dutton nuclear plan ‘economic madness’
Jim Chalmers has fired the first salvo in what is likely to be a sustained campaign of economic attacks by Labor on Peter Dutton’s nuclear plan, to be driven by the Treasurer himself.