Ron Bell, Chief Executive Officer of the Real Estate Institute of the ACT, remembers when the then Treasurer, Paul Keating, removed aspects of negative gearing. The policy had to be quickly reversed when large numbers of people couldn't find rental accommodation, and a large number of home-building projects were wiped off the drawing board.

Bell said Labor's proposed changes will result in higher rents, more expensive housing, and less work for builders, planners and architects.

Bell pointed out that most property investors own only one property for rent, and are actually providing much-needed rental accommodation for those who cannot afford to buy, while at the same time providing for their own future. In 2013, he said, approximately 2 million individuals owned a property that was rented. Of those, 73% owned only one property. A further 18% owned only two properties. 

By encouraging Australians to invest in property, Bell said that negative gearing also stimulates all sorts of businesses - trades, housing suppliers, architects, designers.

Bell made the point that negative gearing applies to losses incurred by a variety of assets, not just property. The property asset class shouldn't be treated differently to other investments, considering there is a housing supply shortage in Australia.

Bell urged the political decision makers to be sure of the facts before they act, and to understand the implications of their policies.