Rank-and-file Labor members are urging Treasurer Jim Chalmers to curtail the 50 per cent capital gains tax discount on housing, arguing it would push money into more productive areas of the economy and open up fresh supply for first home buyers.

NSW Premier Chris Minns on Monday also backed taking a fresh look at tax breaks that “disadvantaged” first home buyers, saying he would “encourage” the Albanese government to look at CGT as part of the “big conversation on productivity and taxes” currently taking place.