Crack down on negative gearing: ACOSS

The federal government is being urged to restrict tax deductions for negatively geared property investments, saving more than $1 billion a year.

Peak welfare body ACOSS has released a report calling for Australians to no longer be able to claim losses on investments against their wages.

The current system benefits the rich, with over half of geared housing investors in the top 10 per cent of personal taxpayers, the council's CEO Cassandra Goldie told ABC radio on Thursday.

Later Prime Minister Tony Abbott, speaking to reporters in Melbourne, ruled out any changes to negative gearing.