The federal government could take a fresh look at negative...

The federal government could take a fresh look at negative gearing rules in the May budget to help balance the books and make housing more affordable and accessible.

Negative gearing allows investors to fully deduct costs associated with a rental property against their income, reducing their tax liability.

Government sources say one of the changes being considered by Treasury is the grandfathering of arrangements for existing investors, but limiting future access to negative gearing so only new properties will be eligible.

It is understood Treasury and the Parliamentary Budget Office have done work in this policy area in recent months.

http://www.sbs.com.au/news/article/2014/04/03/taking-fresh-look-negative-gearing