Controversial tax changes for shares and businesses will prevent more money from being funnelled into existing homes, Treasurer Jim Chalmers claims.
Businesses have been relatively receptive to Labor's decision to wind back tax breaks for property investors.
But changes to the capital gains tax discount on share sales have been slammed by critics, who say it will discourage business investment and constrain productivity growth.
The treasurer has consistently defended the decision to extend the changes beyond property, arguing it would add another distortion to the market and result in capital being allocated for tax reasons rather than pure economic fundamentals.
Speaking at a summit hosted by investment bank Morgan Stanley in Sydney, Dr Chalmers revealed why the government chose not to distort the market in the other direction and give businesses a more generous tax treatment than existing homes.
