Changes to negative gearing and the capital gains tax will have a small impact on property affordability, the housing minister concedes.
The federal government will on Thursday introduce to parliament its changes to the taxes, to make it easier for more first home buyers to enter the market.
Under the changes, negative gearing would only be limited to new homes from July 2027, while the 50 per cent discount on capital gains tax would be replaced by a rate based on inflation from the same time period.
Housing Minister Clare O'Neil said while the changes would enable 75,000 more people to buy their first home over the next decade, property prices would come down as a result.
"This will have a modest affordability effect on house prices in Australia, but at the end of the day, the thing that is driving house prices is actually not our tax settings," she told ABC TV on Wednesday.
