Federal Labor did try to remove negative gearing and reduce the Capital Gains Tax discount, but it wasn't a vote winner and may even have been detrimental to them in the election. They must have determined it was detrimental to them because they scrapped it as a policy.Its a bit of a finger point exercise but when you break it all down both major parties have pretty much cooked the housing market and there is every chance its going to bust in the next year, 5 years, 10 years or 50 years.
Shame on both parties for not having the guts to try and fix this up when they both had the chance. If it all goes to s*it its the reason voters will probably continue to drift away from both parties.
The state governments would be interested in having more investors the owner occupants. The reason being is that investors pay stamp duty AND an annual land tax. An owner occupier it just pays stamp duty. Also the higher the price of the property the higher the tax paid for both stamp duty and land tax.