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Negative gearing needs review: CBA

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Australia's biggest lender wants the federal government to consider changes to negative gearing rules as part of a possible future overhaul of the tax system.

The Abbott government has commissioned a tax white paper review, but has ruled out any move on negative gearing, saying axing the concession could push up rent.

But Commonwealth Bank boss Ian Narev says negative gearing should be on the table.

"This is one of the things that needs to be looked at broadly as part of the overall tax review," he said.

Mr Narev said negative gearing undoubtedly had an impact on the housing market by boosting demand from investors, a fact which has helped CBA to post a record $9.15 billion profit on Wednesday.

However, he said the concession should not be looked at in isolation.

"In the structure of the Australian property market, where you have a high degree of investor borrowing... undoubtedly negative gearing is a factor," he said.

"But I think its dangerous to say `and therefore, solely because of that reason, we should do something about negative gearing'."

Mr Narev also said both the coalition and Labor could do a better job of outlining the case for tax reforms and other policy measures considered necessary to help make the economy more competitive.

"I think there is more that can be done on both sides of politics to advance the policy debate and I think there is more that we can do as business leaders to advocate for the right policies and help create an environment where those discussions can be had," he said.

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Narev says negative gearing should be addressed by govt's tax review.

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