On Seven's Sunrise program on Wednesday, Ms O'Dwyer said Labor's proposal to limit negative gearing to new properties was irresponsible and would drive up house prices.

"They have got a policy that will increase the cost of housing for all Australians, for those people who own a home and for those people who would like to get into the housing market through their negative gearing policy," she said.

The claim house prices would rise was in stark contrast to Mr Turnbull's argument that the policy would "smash" house prices, driving them down and making people poorer.

"The consequence of it will be a decline in property prices, every home owner in Australia has a lot to fear from Bill Shorten," Mr Turnbull said on Friday.

Mr Turnbull was peppered with questions about the contradiction during a press conference at Parliament House. 

Ms O'Dwyer, who became a cabinet minister in September, later moved to clean up the mess.

"The point I was making is that under Labor's policy there will be increased demand for new property, pushing up prices for new property," she said in a statement.

"It is clear from Labor's ill-considered policy that existing house prices will decline."

In her Sunrise appearance, Ms O'Dwyer also admitted that "there has been confusion" over the government's economic plans but blamed speculation and misleading statements.

The government has struggled to find the right sell for its tax policies this week, with the Prime Minister ruling out increasing capital gains tax on Monday before clarifying on Tuesday that changes are actually being considered.

On Monday, Mr Turnbull said "increasing capital gains tax is no part of our thinking whatsoever".

The next day, leaked Coalition talking points outlined that the government would not emulate Labor's plans but the "government is still carefully considering some other changes".

Labor recently announced a policy to reduce capital gains tax concessions from 50 per cent to 25 per cent and restrict negative gearing to new properties.