Ciobo rejects calls to tax $2m home sales

A government frontbencher has rejected a proposal to remove capital gains tax exemptions for houses worth more than $2 million.

Steve Ciobo says the Australia Institute proposal, which would raise $12 billion over four years, has no political support.

"It would seem passing strange that you would look at a proposal which would actually penalise to a much greater extent the one industry that's actually providing us a strong period of growth," he told Sky News on Monday.

"There's no magic formula - if you impose more tax, then those extra taxes simply get passed on to consumers."

Renowned company director and former Australian of the year Simon McKeon has backed the proposal, questioning why a "free kick" is given to those wealthy enough to own expensive homes.

"There are plenty of homes, particularly in Sydney and Melbourne and Perth, that you just say, why should they be exempt?" the AMP chairman told the Australian Financial Review.