Parliamentarians are being urged to pass laws limiting tax breaks for property investors and not "let the perfect be the enemy of the good".
Looming tax reforms would help make the tax system more equitable, independent economist Saul Eslake said on day one of a snap two-day inquiry into the tax changes on Monday.
While he had reservations about the proposal to replace the 50 per cent discount for capital gains tax with a rate tied to inflation and a 30 per cent minimum and limit negative gearing, Mr Eslake said other criticisms of the changes were unwarranted.
"I'm never one to let the perfect, in my eyes, be the enemy of the good, and I think that the changes that the government has proposed would be an improvement," Mr Eslake told a Senate committee hearing.
