Tycoon pollie changes his tune
The Courier-Mail
Madeleine Bower
Labor frontbencher Andrew Charlton accused more than five million Australian baby boomers of “pulling a collective scam on the next generation” in unearthed comments from his 2007 book, comparing property-owning retirees to white collar criminals who manipulate the stock market.
The remarks come as he backs the Labor government’s controversial changes to capital gains tax and negative gearing.
Dr Charlton, who was appointed Cabinet Secretary by Anthony Albanese in May last year and is tipped by insiders as a future Labor treasurer, made the attack in his book Ozonomics, published long before his entry into politics.
He rails against baby boomers who amass property for investment purposes, only reselling to make a profit and inflate the market.
“Yep, we’re paying for our parents to live it up,” he wrote. “A cynic might say that the baby boomers are pulling a collective scam on the next generation. The boomers’ trick has been an adaptation of an old stock market scam called ‘front running’.
“It works like this: the scammer realises that someone else wants to buy some shares, so he or she jumps in before their rival, snapping up all the available stock, pushing up the price and then reselling it later at a larger profit to the hapless buyer. It’s a simple way to make a lot of money at someone else’s expense.”
The comments sit uneasily alongside the property empire Dr Charlton has since assembled, estimated to be worth $42m. According to his Register of Interests, he and his wife, Sydney silk Phoebe Arcus, own five properties: two in Parramatta and one each in Bellevue Hill, Woollahra and Palm Beach. The Bellevue Hill home is worth more than $20m, while the Palm Beach weekender is valued at $12m.
Dr Charlton has not confirmed whether he has used negative gearing on any of his properties.