He said a reduction in the benefits investors can gain from the combination of capital gains tax concessions and negative gearing should be implemented to both cool the housing market and book up to $10 billion in extra revenue to close the Federal Government's budget deficit.
"It will work in the direction of slowing the investor demand for housing, which has been a major reason I think demand has outstripped supply and, in those circumstances, it is something that should be done," Dr Hewson told Lateline.
