The Turnbull government has no intention of tinkering with negative gearing in the May 3 budget, rather making it a point of difference with Labor.
The Turnbull government has ruled out making any changes to tax offsets through negative gearing or the capital gains tax discount.
Prime Minister Malcolm Turnbull and Treasurer Scott Morrison confirmed the government's stance, saying Labor's housing tax plan will deliver a reckless trifecta of lower home values, higher rents and less investment.
"We won't have a bar of it," Mr Turnbull told reporters in Sydney on Sunday.
Mr Morrison, who will hand down his first budget on May 3, said Labor's proposal is a housing tax.
"We have the commonsense to know we need to leave the system as it is," he said.
Labor has proposed limiting negative gearing to new properties should it win the likely July 2 election, while halving the CGT discount to 25 per cent from 50 per cent.
