Turnbull faces backbench revolt over negative gearing

MALCOLM Turnbull faces a Liberal backbench revolt if he does not rule out changes to negative gearing.

A group of MPs has threatened to start a public campaign aimed at preserving the current system if Mr Turnbull does not see things their way.

They say cutting negative gearing concessions would increase taxes on investors.

Senator Cory Bernardi told the ABC yesterday leaks of mooted changes were cause for concern.

The Government is believed to be considering a plan that would limit negative gearing deductions.

"The universal view from those I've had a chat with is 'We'd be mad to mess with it'," he said.

Backbencher Ewan Jones said there were parts of the current system that could use a fresh perspective.

"There are people there who have 20-plus houses negatively geared," Mr Jones told the ABC.

"Is that what we envisaged when we brought in negative gearing?"