Shadow treasurer Chris Bowen denies Labor is using weasel words to explain its position on negative gearing.
The opposition is preparing to take a policy to the next election amid a furious political debate about housing affordability.
The Labor-aligned McKell Institute has proposed limiting negative gearing to new properties that would help drive residential construction and return nearly $30 billion to the federal budget over 10 years.
Mr Bowen would not be drawn on the proposal, saying he would not respond to individual submissions to its policy development work.
While negative gearing played an important role in the economy it was sensible to methodically consider all the options in light of fiscal challenges and concerns about housing affordability, he said.
When asked whether that was simply weasel words, Mr Bowen told ABC radio on Thursday: "We're taking the responsible approach here, unlike the government which is just lecturing people, insulting people and not really with the real issue."
Prime Minister Tony Abbott cited the experience of his three daughters as he argued it was not impossible for Australians to get a deposit for their first home while paying off university debts for instance.
One of them had been able to enter the market in Canberra yet the other two were finding it "daunting".
"It's not impossible because remarkably a lot of people do it (but) it's not easy, no doubt about that," he told Alan Jones on Radio 2GB Thursday.
Mr Abbott said there was a need to increase housing supply, arguing red and green tape was "literally killing people" trying to enter the market.
"Mucking around" with negative gearing was not the answer to easing housing affordability because it would increase rents, he said.
Treasurer Joe Hockey, under fire for suggesting all that was needed to buy a home was a good job with good pay, has come under a separate attack for his use of a parliamentary allowance to help fund the purchase of a Canberra residence by his wife.
Mr Hockey has legally claimed more than $100,000 in parliamentary allowances to rent the house.
Independent senator Nick Xenophon says arrangements like that should be more transparent.
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