Yes, we need to get rid of "middle-class welfare" which has been used to buy voter support. This also includes CGT concessions and negative gearing.
Your quote "Labor politicians have increased their known property acquisitions by 20% these last few months to take advantage of what they know about new negative gearing policies. " - can you cite a source to substantiate that?
Australia has one of the best designed tax systems in the world, unfortunately politicians have messed with it for political reasons and caused the same type of distortions that needed reform 30 years ago.