QUESTIONS WITHOUT NOTICE

Senator GALLAGHER (Australian Capital Territory—Minister for Finance, Minister for the Public Service, Minister for Women, Minister for Government Services and Manager of Government Business in the Senate) (14:41): That is indeed what the Treasurer has said, and it's the advice that Treasury has provided. What it says is that, instead of making investment decisions based on the concessional nature of the tax break that's associated with that investment, you make that investment based on what is the most productive use of your dollars, on neutral tax settings—that is, the tax settings remain neutral, so therefore you're making decisions on what is the most productive use of that investment.

At the moment, what we're seeing—and it's clear in budget statement 4 of BP 1—and have seen since 1999 is investment dollars going into established property for the nature of the return that can be generated there. The consequence is that first home buyers have been squeezed out of the housing market. You want that to continue, and we don't think that's right.

The PRESIDENT: Senator Bell, second supplementary?