Negative gearing war: bring it on, Shorten tells real estate agents

The real estate industry is set to launch a grassroots campaign attacking Labor's policy to curb tax breaks for property investors.

Labor would provide scholarships for science and maths teachers, Opposition Leader Bill Shorten says. Source: AAP

If real estate agents wanted to scare Bill Shorten into waving the white flag on his planned crackdown of tax breaks for property investors, the Labor leader isn't shaking in his boots.

Some of the nation's biggest realty firms are launching a grassroots campaign to attack Labor's plans to curb negative gearing, warning families, renters and homeowners the policy is an "economy killer".

But Mr Shorten says he'll take the advice of the central bank over real estate agents crying out about losing their $10 billion yearly perk in concessions.

An internal Reserve Bank memo suggests discouraging negative gearing may be a good thing for the financial stability of the country.

"Vested interests will always scream in defence of their particular taxpayer subsidy," Mr Shorten told reporters as he campaigned in Sydney's inner west on Friday.

The policy was sensible and would generate jobs and lower house prices, he said.

Prime Minister Malcolm Turnbull warned banning negative gearing would drive down property prices, telling reporters in Adelaide Mr Shorten posed a "dangerous threat" to the economy.