A Liberal backbencher has revealed that the government is actively considering changes to capital gains tax in an effort to tackle housing affordability, despite the Prime Minister ruling out any such reform only last week.

John Alexander, the Liberal member for Bennelong, said on Sunday that increasing capital gains tax was one of many options being considered by the government, publicly contradicting Malcolm Turnbull who said on Friday that “we have no plans to increase tax”.

It was the second time in three days that Mr Alexander bypassed the PM’s office to raise the prospect of reforming the tax benefits enjoyed by property investors.

Speaking to The New Daily on Friday, Mr Alexander said property investors had “dominated the market and eliminated the home buyer”, especially first-time buyers like his own 25-year-old daughter.

He revealed tax reform was on the agenda during budget negotiations, and suggested there had been a carefully concealed hint in Mr Turnbull’s use of language.

“I think, again, listen to the words very carefully. When our Prime Minister says ‘we have no plans’ that is correct,” he told Sky News on Sunday.

“Are we working on plans? Yes we are.

“Are there those in our party who are promoting that as another issue that could be addressed, could be modified, could be calibrated? I think the answer is yes.”

Watch a segment from MP Alexander’s interview below:

Liberal backbencher @JohnAlexanderMP says changes to capital gains tax aren’t off the table for the government #agenda #auspol pic.twitter.com/q7BUOeA6n8

— Sky News Australia (@SkyNewsAust) February 19, 2017

Mr Alexander’s attempts to get attention on the issue place the Prime Minister under pressure to explain his comments from last week, which were consistent with the position he and Treasurer Scott Morrison arrived at before the budget last year.

In February last year, both Mr Turnbull and Mr Morrison dismissed changes to capital gains tax and negative gearing, with Mr Turnbull saying that “increasing capital gains tax is no part of our thinking whatsoever”, while Mr Morrison called it “one big fat tax on investment”.

Mr Morrison is currently looking at other options to tackle housing affordability in the May budget, including the issuance of government-backed bonds to encourage investment in residential construction.

PM Malcolm Turnbull said the Liberal Party has ‘no intention’ to change CGT. Photo: AAP

Mr Turnbull has admitted the issue is complex, but said the key is ensuring there are enough homes available.

“It is essentially a supply and demand problem,” he told reporters in Darwin on Sunday.

Mr Alexander previously called for reform of the capital gains tax and negative gearing on Thursday, fighting for first home buyers.

In his interview with Sky News, Mr Alexander also confirmed the idea was discussed with Assistant Minister to the Treasurer, Michael Sukkar, who is responsible for developing the government’s housing affordability policies.

However, Mr Sukkar danced over reports the government is looking at making changes to the CGT, refusing to say whether or not there would be a change to the taxation law.

“There’s no proposal or intention to do so at the moment,” he told Sky News.

“It would be very foolish for me now to rule anything out other than to say the Prime Minister said it in Question Time.”