Morrison seizes on negative gearing report

A report by forecaster BIS Shrapnel on Labor's proposed changes to negative gearing is a "damning indictment" on the policy, the federal government says.

The federal government is considering putting a cap on claimable losses for negative gearing. (AAP) Source: AAP

Treasurer Scott Morrison has seized on a report which says Labor's proposed changes to negative gearing would result in rising rent prices.

Forecaster BIS Shrapnel estimates the policy would increase rents - possibly by as much as 10 per cent - with fewer properties being built meaning less employment.

Mr Morrison told ABC radio on Thursday the findings are a "damning indictment on Labor's policy".

"It's bad news if you own a home, it's bad news if you're an investor in a home, and bad news if you're renting a home," Mr Morrison said.

"That's three strikes and you're out."

Mr Morrison played down the fact the modelling had been commissioned by an unknown client, saying BIS Shrapnel was a reputable firm.