QUEENSLAND will become ground zero for Labor's "disastrous" negative gearing plan with some of the poorest households in the state warned they will pay more rent.

Prime Minister Scott Morrison has seized on new data revealing Queensland is the investment capital of Australia - and many of those rented homes are in the regions.

Mr Morrison has used his strongest language to date to warn Queenslanders that a Labor government would make it harder to get ahead.

Renters statewide are in the crosshairs, with CoreLogic data revealing six of the top 10 regions for investment in Australia are in Queensland.

Labor has pledged to scrap negative gearing allowances, except for new homes.

Tens of thousands of investors who negatively gear rental properties live in Labor-held seats, including Logan, Ipswich and Townsville.

There are 250,000 investors who negatively gear rental properties in Queensland, with the top 10 in Brisbane, Griffith, Flynn, Ryan, Dawson, Herbert, Capricornia, Lilley, Leichhardt and Bonner.

In central Queensland, north Queensland and far north Queensland - areas that have faced significant economic challenges - the share of investment properties is about 27 per cent.

Mr Morrison, who appeared with new Gilmore candidate Warren Mundine, said voters needed to understand what a vote for Labor meant for their hip pockets.

Prime Minister Scott Morrison and new Liberal candidate Warren Mundine. Picture: Jonathan Ng
Prime Minister Scott Morrison and new Liberal candidate Warren Mundine. Picture: Jonathan Ng

"The house you own will be worth less and the rent you pay will be more (and) Labor just doesn't understand this," he said.

"It's not just homeowners being hit, it's renters too.

"With fewer investment properties in the market, and investors having to earn more because their values are going down, rents will go up. That is what happened last time Labor tried this. They never learn from their mistakes."

Mr Morrison said Queenslanders would be hardest-hit by the Labor plan.

"Hard-working Queenslanders use negative gearing to help save for their retirement, to put their kids through school and build financial security for their families," he said. "It's their money and I want them to keep it.

"With storm clouds gathering over the global economy, Labor couldn't have picked a worse time to mess with people's investments.

"Even if you don't negatively gear, if you're in an area where others do, you have to ask yourself what will it do to your house price and the rent you pay."



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