Shorten uses NSW ALP conference to unveil negative gearing changes to to 'level housing playing field'

Federal Opposition Leader Bill Shorten has unveiled plans to change negative gearing rules for property purchases, in a move touted to "put the great Australian dream back within reach for the middle and working class". Key points: Labor government would restrict negative gearing to "newly constructed homes" Capital gains tax discount reduced from 50 per cent to 25 per cent Both measures would come into force from July 2017 All existing investments under the scheme would be fully "grandfathered" and protected against changes With just months to go until a federal election is called, Mr Shorten used his speech to the NSW ALP conference to rally the party faithful for the battle ahead. "Under a Labor Government, the family home will always be 100 per cent capital gains tax-free and these two reforms that we announce today will save $32.1 billion and help put fairness back into the housing market." 'Mum and dad investors' will keep deductibility A Labor Government would also reduce capital gains discounts from 50 per cent to 25 per cent "It cannot be rationally argued anything else but with a capital gains tax subsidy of 50 per cent, that the whole system is accessibly distorted and overly generous in favour of income from capital instead of income from earnings," Mr Shorten said.