News Service from House Harris

Fed: Rudd says he isn't aware of any housing CGT request

CANBERRA, Aug 17 AAP - Prime Minister Kevin Rudd say he isn't aware of any request for the ongoing taxation review to examine imposition of capital gains tax on expensive homes.

But neither did he rule it out.

"I am unaware of any such request," he said in response to a question from Opposition Leader Malcolm Turnbull.

Mr Rudd said the government embarked on the Henry review of the tax system to have a comprehensive set of options for long-term tax reform.

"It is the right course of action. We await the outcome of that report from the secretary of the treasury Mr (Ken) Henry," he said.

The Weekend Australian newspaper reported that the government had asked Treasury to model various capital gains tax scenarios on homes valued at $2 million or more including making interest payments on mortgages a deductible expense.

However a statement released by Treasurer Wayne Swan on Saturday morning said claims the government was considering such moves were incorrect.

In a second question, Mr Turnbull asked whether the government would rule out any new tax on the family home.

Mr Rudd said the problem in the past had been to engage in mature debate on the tax system without being derailed by partisan comment.

"Whatever did happen to the Ergas review," he asked, referring to a the tax review commissioned by Mr Turnbull and to have been completed by the end of last year.

"It seems to have disappeared down the same hole as the credibility of the leader of the opposition."

Asked by Opposition treasury spokesman Joe Hockey about comments made while a member of the Keating government, Finance Minister Lindsay Tanner said most politicians said things in the past that they didn't agree with now.

In his remarks, Mr Tanner cited chronic over-investment in housing, advocating the abolition of negative gearing and modification of the capital gains tax exemption on private housing.

"Whatever views I expressed as an eager young backbencher 15 years ago, I stand by the government's position," he said.

"The government is reviewing all aspects of the taxation system in order to present a modernisation for the Australian taxation system to take out economy forward."