Prime Minister Anthony Albanese received an estimated $200,000 tax advantage under current capital gains tax rules before his government moved to change the rules for future property investors.

Albanese purchased three investment properties for a combined $2.45million between 1996 and 2015.

He later sold them for about $4.76million, almost doubling his investment.

The current CGT system, which gives a 50 per cent discount on capital gains, meant he paid roughly $542,000 in tax, according to analysis seen by news.com.au on Wednesday.

Under previous Hawke-Keating era rules, which did not include the discount, Albanese would have paid closer to $752,000.

This gave Albanese an advantage of about $200,000 under the current system. 

The figures emerge as the government seeks to wind back CGT concessions as part of broader housing reforms to improve affordability and reshape investor incentives.

The changes have been defended by Albanese's cabinet, including Housing Minister Clare O'Neil, who said Australians 'are already seeing change in the market'.

'It is a long time since I have picked up a Sunday newspaper and read an article after article about first-home buyers winning at auctions,' O'Neil told ABC Radio National on Wednesday. 

'But that is what is happening, and that is happening not only as a result of the Government's tax changes but as part of that.'

Last weekend, Australian auction clearance rates collapsed to around 47 per cent nationally, the weakest since April 2020. 

O'Neil noted auction clearance rates have diminished but rejected claims that this means a major downturn.

'The housing market is cyclical in Australia,' she said. 

'We see periods of very significant house price growth and then we see the market make a correction, and that is what we are seeing at the moment.'

Asked if Australia is currently in a downturn, O'Neil said the market has entered a corrective phase.

'We have just been through extremely high house price growth from before Covid to today, where prices have risen by more than 50 per cent, and we are now seeing a correction on that,' she said.

The Albanese government argues its combined approach - adjusting tax settings while increasing supply - will gradually shift the market towards owner-occupiers.

It says the move will reduce speculation.

Critics, however, question the optics of reforms that follow years in which senior figures, including the Prime Minister, benefited from the old system.

Shadow Housing Minister Andrew Bragg said government policies risk worsening affordability by focusing too much on demand rather than supply.  

He dismissed O'Neil's assessment and cautioned against relying on short-term market moves during an interview with ABC News Breakfast.

'Housing is a long game, and I am not sure that she is a forecaster. What we see in entry-level housing is still persistently high prices,' he said. 

'The government has pump-primed prices with their collapse of supply, but also their five per cent deposit (schemes).

'Ultimately, until we see a larger amount of housing supplied, I do not think we are going to see price stability or affordability.'

Bragg said housing costs remain out of reach for many young Australians, describing price-to-income ratios as unsustainable. 

'House prices are too high for young people,' he said.

'If you are a younger person looking at a house as a multiple of your salary at 10 or 15 times, it is ridiculous.'

He insisted the solution is boosting construction numbers, not expanding buyer incentives.

'We need a supply-side revolution where we cut the cost of building and are able to get a lot more houses supplied,' Bragg said.

'Under this government, they have built 30,000 fewer houses each year, despite an $80billion investment in housing. 

'Just because you spend more money on housing does not mean that you get more houses.'