Labor's controversial tax changes will have no effect on economic growth or productivity, Treasury officials have conceded.
As the government passed changes to negative gearing, the capital gains tax and trusts through the lower house on Thursday, departmental officials argued the package would boost home ownership and improve intergenerational equity.
But the budget did not improve the outlook for GDP or productivity growth in either the near- or medium-term, Treasury told a senate estimates hearing.
"It, in aggregate, did not have a significant impact (to GDP growth) in the near term," assistant secretary for macroeconomics Angelia Grant said.
At best, the budget firmed up Treasury's confidence in its existing 1.2 per cent long-term assumption for productivity growth.
"If there were not policies ... in order to increase productivity growth in Australia, then our assessment of the risks around the medium term would be different," Dr Grant said.
