PM Anthony Albanese is selling a Dulwich Hill investment property.

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Anthony Albanese could have claimed as much as $25,000 in tax breaks over the first year of owning his Dulwich Hill investment property if he bought with a standard deposit and rate, modelling shows.

It comes as the Prime Minister Wednesday refused to rule out reforms to negative gearing and capital gains tax when grilled over reports treasury officials had sought advice on changing the concessions.

The Prime Minister said he had “seen the reports” and did not deny his government had commissioned the advice.

Mr Albanese bought his investment property in the Sydney suburb of Dulwich Hill in November 2015, with records revealing he paid $1,175,000. The three-bedroom house was later listed for rent at $880 per week.

The property is now up for sale with hopes of about $1.9m.

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The Dulwich Hill property has $1.9m hopes.

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The same property attracted headlines earlier this year when it emerged that the tenant of four years was served an eviction notice.

It is not known exactly how much the Prime Minister paid in deposit or what lending rate he used, but mortgage analysis indicated it was likely he would have been negatively geared in most scenarios.

This included a situation where he used either a 10 or 20 per cent deposit on the property – the most popular options for investors.

Modelling by MCG Quantity Surveyors indicated an investor paying down a loan at the price Mr Albanese paid in Dulwich Hill would have incurred just over $53,000 in annual interest over the first year.

This assumed a 20 per cent deposit and an interest-only loan at the typical mortgage rate being offered to investors at the time.

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The property last traded in 2015 and was listed for rent for $880 per week.

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Given the $45,760 annual advertised rent, this would have allowed him to claim back about $7,350 in losses on the interest payments alone, according to MCG’s tax estimate.

But it’s likely in this scenario that his tax deductible losses could have been even higher when factoring in repair and maintenance costs.

The property built in 2014 was also only a year old when he bought it, which would have allowed him to make additional claims on losses through depreciation.

Depreciation on a property bought in November would have been about $7,270 in the first tax year. Coupled with standard management fees it would have meant Mr Albanese’s total tax deductible losses could have been at least $18,143.

Were Mr Albanese to have purchased with a 10 per cent deposit – the most frequently used deposit among investors, according to the ABS – the losses could have been as high as $24,782. (excluding repair costs).

It’s worth noting that these figures do not reflect the losses that Mr Albanese would have actually claimed and are only a speculative estimate.

Federal Treasurer Jim Chalmers has remained tight lipped on whether he directed his department to scope out negative gearing changes. Picture: NewsWire / Martin Ollman

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MCG Quantity Surveyors director and tax expert Mike Mortlock said Mr Albanese’s investment property did not represent the “norm” in Australia given the price tag of over $1m. “Most investors buy properties priced at about $650,000 so the negative gearing claims are usually a lot smaller,” he said.

The two-level Dulwich Hill property is currently up for sale through Shad Hassen of The Agency with $1.9m hopes.

The listing describes the home as a “superb family residence designed to maximise space and style”.

The Coalition has seized on the reports of treasury officials seeking advice on negative gearing changes.

Prime Minister Anthony Albanese refused to rule out changes to negative gearing. Picture: NewsWire / Martin Ollman

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Opposition finance spokeswoman Jane Hume warned scaling the incentive back could have a “dramatic” impact on housing supply.

“If you take landlords out of the system, well, then all that happens is rents go up,” she said.

“You take away negative gearing, as clearly the government are planning to do, that’s why they’re commission the work … you’re going to have a dramatic impact on rental supply.”

Real Estate Institute of Australia president Leanne Pilkington said disincentivising investment into housing for mum and dad investors will just make a bad situation worse.

“The impact on small investors, predominantly ‘mum and dad’ investors, will discourage them from entering or remaining in the market, further reducing housing supply.

“With 37.9 per cent of all finance to households for residential property coming from investment loans, the REIA stresses the urgent need for policy measures that promote investment and enhance housing affordability.

“Ultimately, any changes to negative gearing should be approached with caution, ensuring they do not inadvertently harm the very individuals they aim to support.”