Sources say negative gearing changes are not on the table but there have been two separate reports in the past week that the government has been looking at curbing the excesses of negative gearing. Mr Morrison appeared hostile to touching negative gearing on Monday.

He continues to insist that increasing supply was "the most important thing".

"There's no one housing market in Australia, they're all different."

He said the proposal that "you put up a tax and somehow you can buy a house anywhere you like, that's a lie".

Move to Tamworth

The Treasurer said people, if they chose, should consider moving to regional cities like Tamworth where they could have a house and a better quality of life.

For this reason, he supports Nationals leader Barnaby Joyce forcibly relocating government agencies from Canberra to other regional cities.

On the weekend, it was reported the government would stop foreign investors buying more than 50 per cent of a new housing or apartment development.

It is also looking at a proposal flagged two years ago by Mr Morrison when he was social services minister to encourage ageing homeowners to downsize and free up stock for young families. It would also unlock billions in capital.

Some of the surplus funds left over after downsizing would be quarantined from the age pension assets test, and the new restrictions on superannuation, to remove one of the core reasons people stay in large homes long after their children have left.

This would require exemptions to the $1.6 million cap on tax-free super retirement funds, or the $100,000 annual cap on non-concessional contributions.