Mr Brunette said the majority of investors in Eden were hard working “mums and dads” who stood to be adversely affected by any changes to legislation relating to investment properties.

The Hawke/Keating government had “tested” changes to negative gearing in the mid 1980s before reverting to the original policy, he said.

But Labor’s candidate for the federal seat of Eden-Monaro, Mike Kelly, said the decision was merely a pre-election ploy.    

Dr Kelly said negative gearing was used more by wealthy investors than so-called mums and dads, as evidenced by the fact that the greatest number came from Malcolm Turnbull’s own electorate.

Handing down his first budget on Tuesday night, Treasurer Scott Morrison’s said the aim was to create a strong economy with more jobs and growth.

Eden-Monaro MP Peter Hendy said the budget delivered tax cuts and incentives for small businesses and relief for hard-working families.   

From July 1 this year, small and medium businesses with an annual turnover of less than $10million will have their company tax rate cut to 27.5 per cent.

Dr Hendy said this would reduce the tax rate for almost 4850 companies across the Eden-Monaro electorate.

The government will also increase the middle tax bracket threshold from $80,000 to $87,000 from July 1, he said.

But Dr Kelly was scathing in his criticism of health components within the budget, especially the government’s decision to freeze the Medicare rebate which he said amounted to a “GP co-payment by stealth”.

The cost of prescriptions, routine pathology tests, including pregnancy tests and pap smears, as well as X-rays and MRIs would rise, he said.

Dr Kelly said public service cuts would also have a negative flow-on impact on Eden’s economy which was driven by “Canberra holiday- makers”.

The Port of Eden would also miss out from the government’s lack of commitment to more renewable energy projects like the Boco Rock wind farm, he said.