The Barefoot Investor has issued a blunt piece of advice to investors days out from  the federal budget.

Finance guru Scott Pape said those who are concerned about Labor’s proposed capital gains tax (CGT) changes should just stop whinging, amid concerns the changes will force landlords to jack up rents.

'For far too long, first home buyers have had the footprints of investors on their backs,' Pape said in response to an angry property investor who had sought his advice by describing the proposal as 'utter madness'.

'I’m not sure if you’re from the housing lobby, the Liberal Party, or if you’ve just stumbled onto my column for the first time in 22 years and haven’t worked out that I’ve spent the better part of two decades arguing against negative gearing and every other form of taxpayer-funded landlord welfare.'

Referencing the investor's comment that nine per cent of mortgage holders would default if there are one or two more rate hikes, Pape said property owners should ensure they have the financial capability to withstand increased rates.

'First, if they’re that skint, they should sell their homes immediately and get out of the market while they still can. They don’t own their home. The bank does,' he said.

'Second, these people most certainly are not my readers. We’re way too smart for that.'

Pape also slammed the investor's reference to an expert describing the proposed changes as a 'toxic mix of pain and devastation'.

'Please. If that’s what happens to your investment portfolio after a few tax tweaks, you’ve got bigger problems than I can help with,' Pape added.

It has all but been confirmed that the Albanese government will announce changes to the CGT discount in Tuesday's budget to address concerns about intergenerational inequity and housing affordability.

Under rules introduced by the Howard government in 1999, investors who hold an asset, including an investment property or shares, for more than 12 months only pay tax on half the profit when they sell - a policy Pape has previously described as ‘boneheaded.’ 

Before that, capital gains were indexed to inflation, meaning investors were taxed on real gains rather than receiving an automatic 50 per cent discount.

Treasurer Jim Chalmers is expected to remove the 50 per cent capital gains tax discount for assets held longer than 12 months when he unveils the budget on Tuesday night.

Research from Finder.com.au showed Australians now need to earn around $200,000 a year to comfortably afford a typical house in most capital cities without falling into mortgage stress.

Former Reserve Bank governor Bernie Fraser previously backed winding back the capital gains tax discount for investment properties - but the idea has drawn opposition from former prime minister John Howard and ex-treasurer Peter Costello.

Howard said this would not be tax reform.

'It would be yet another tax slug by the Albanese government which lazily leans on the [Australian Taxation Office] to provide extra revenue,' Howard told the Australian Financial Review.

'It would hurt the aspirational middle class.'

Mr Fraser said he had always opposed the 50 per cent discount on capital gains but was more open to a discount for other assets such as shares.

It comes as Wilson Asset Management founder Geoff Wilson, who recently returned to Australia's Richest 250 list with an estimated fortune of $900million, slammed the proposed changes to the CGT as a 'punitive raid on aspirational Australians' in a series of scathing posts last week. 

A young Australian who invested $10,000 a year for 50 years, compounded at 15 per cent annually, would see their investment grow to $10.84 million.

Under the current 50 per cent discount, the government would take 'roughly $2.54million in tax', according to Mr Wilson.

The tax would double to $5.23million if speculation about the proposed changes is correct.

'This isn't reform. It's theft from every aspirational Australian under 40 trying to get ahead,' the fund manager fumed.

Labor previously took plans to halve the CGT discount to 25 per cent to the 2016 and 2019 elections, but both campaigns ended in defeat.

Those losses prompted Anthony Albanese to rule out changes to CGT after he was elected Prime Minister four years ago.

Chalmers has conceded the backflip marks a departure from Labor’s previous pledges, but insisted the government was always transparent about reviewing housing tax settings. 

‘The commitment that I give you and I give the Australian people more broadly, is, if we come to a different view, we will explain why,’ Chalmers told Sky News on Sunday.

‘But people know there is an appetite in this government for ambitious tax reform.

‘Part of that is recognising that the status quo in housing and tax and the intersection of those two things is effectively broken because there aren’t enough homes in our local communities.’

Chalmers described the current system as unfair and unsustainable.