Calls for CGT, negative gearing reforms 'unanimous': Mulino

Assistant treasurer and minister for financial services Daniel Mulino said changes to capital gains tax (CGT) and negative gearing - which are expected to be outlined in tonight's Federal Budget' - came about after "unanimous calls" for reform during the Economic Roundtable in August last year.

"We have over $45 billion in initiatives. But not just that, we passed the EPBC Act, we froze the National Construction Code, but there are other levers. And when we held the national Economic Roundtable, this was an issue where there were unanimous calls for the Government to have a good look at this," Mulino said.

Mulino also signalled the government is prepared to use additional tax levers to address housing affordability and intergeneration inequity.

Despite the reforms having been touched on by the government, Mulino stopped short of confirming specific details that will appear in the Budget.

However, Mulino indicated the government has broadened its focus beyond housing supply alone, arguing tax settings had become an increasingly prominent part of the national affordability debate.

"Housing is a first order issue in this community," Mulino said, pointing to rising concerns around intergenerational fairness and the growing difficulty younger Australians face entering the property market.

Mulino also defended the government's policy development process, saying extensive consultation had taken place through last year's Economic Reform Roundtable, which brought together tax experts, business groups, unions and community leaders.

He said one of the clearest outcomes from those discussions was widespread agreement that existing policy settings were failing younger Australians.

While refusing to disclose modelling or confirm whether the proposed measures would lower house prices, Mulino repeatedly stressed the government remained focused on supply side reforms, including more than $45 billion in housing initiatives, changes to environmental approvals and the freezing of National Construction Code.

Mulino framed the Budget around three core themes; intergenerational fairness, productivity and economic resilience. This suggested tax reform would play a role in achieving those objectives.

The Budget is expected to provide further detail on the governments approach when Treasurer Jim Chalmers hands down the measures tonight.