This report attempts to break the current political impasse by provide a range of politically pragmatic proposals that would reform negative gearing without abolishing it outright. In each of these scenarios, existing investors are quarantined, with negative gearing only partially restricted. In addition, this report has also attempted to identify opportunities that would restructure negative gearing in a way that allows tax expenditure to be more directly targeted towards the creation of new housing supply. Such reforms would help tackle Australia’s housing affordability issues while also delivering a notable improvement in the federal budget.