Shorten stands by gearing plan

Research has pulled the rug from under the government's attack on Labor's negative gearing plan, Opposition Leader Bill Shorten says.

Prime Minister Malcolm Turnbull has rejected a Grattan Institute report finding changes to negative gearing and capital gains tax could save the federal budget $5.3 billion a year.

"The reason why it's pulled the rug under Mr Turnbull's nonsense scare campaign is that in Australia we need to keep alive the dream that buyers of their first home can compete on a level playing field with property speculators," Mr Shorten told reporters in Brisbane on Tuesday.