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Scott Morrison and Mathias Cormann, one of the architects of the Liberals preference deal with One Nation in WA. Morrison says the party would not make a similar deal at a federal level. Photograph: Lukas Coch/AAP

Scott Morrison has said that a Western Australian-style preference deal between the Liberals and One Nation would never happen federally because of the coalition with the Nationals.

The comments give comfort to the deputy prime minister, Barnaby Joyce, and other opponents of the preference deal, as recriminations over the landslide Coalition defeat continued on Monday.

On Sunday, the finance minister, Mathias Cormann, defended the preference deal after the loss but moderates within the Liberal party have warned it must put more distance between itself and Pauline Hansons party.

Speaking on 2GB Radio on Monday, Morrison agreed the result was a landslide to Labor, adding theres no hiding from that, its absolutely true.

The treasurer thanked the former Western Australian premier, Colin Barnett, for his service. He attributed the loss to state factors including the downturn after the mining boom and accused Bill Shorten of photo bombing to take credit for Labors win.

Morrison said Hanson would be judged by her policies and judged by her candidates and noted she had suffered blowback over her comments about vaccinations.

If people think [the preference deal] is the reason the West Australian state government lost the election on the weekend, theyre kidding themselves, he said, attributing the loss to the length of Barnetts time in office.

Asked about giving upper-house preferences to One Nation, Morrison said: Well that would never happen at a federal level, because were in Coalition with the National party at a federal level.

In Western Australia, Barnett directed upper-house preferences to One Nation ahead of the Nationals, with which it has an alliance but not a coalition, in return for One Nation preferences in the lower house.

Theyre a different beast in the eastern states, in New South Wales, in Queensland and Victoria there is an incredibly strong Coalition, so that would just never happen at a federal level its an aberration for what happens in WA, Morrison said.

On Sunday, Cormann said the deal had aimed to minimise Liberal losses by sourcing preferences from One Nation and refused to rule out further cooperation at the national level.

Morrison held the line that federal preference decisions would be made in future. He rejected the idea the Liberals had campaigned poorly, commenting that over the course of the campaign things got a little better for the Liberal party.

Malcolm Turnbull has refused to rule out doing a preference deal with One Nation at the next federal election despite Joyce branding the controversial tie-up in Western Australia a mistake.

The moderate Liberal MP Tim Wilson has said the WA result shows the Liberal party must not become One Nation-lite and enter preference deals with Hansons party.

Wilson echoed comments made by the former Nationals leader Ron Boswell made to Guardian Australia last week that preferencing One Nation would legitimise the party.

The WA election shows there isnt a vast bulk of reactionary voters waiting to be embraced as part of the mainstream, Wilson said.

Wilson told Sky News he probably would pulp party how-to-votes and print his own if the Liberals directed preferences to One Nation. Im pretty hard line about this - I dont think we should be validating or endorsing One Nation.

The perception of ties to One Nation did enormous damage to the Liberal partys brand, Wilson said.

My preference is that we do not put One Nation anywhere near a position that they can then go on to win elections. Every time anyone goes closer to them theyre tainted by the consequences of doing a formal deal with them.

On Saturday night, Hanson said the preference deal with the Liberals had damaged One Nation and labelled it a mistake.

On 2GB, Morrison was asked about housing affordability after reports that the government is considering capping the number of houses investors can negatively gear and has done modelling on limiting capital gains tax concessions.

Morrison said the most important way to put downward pressure on prices was to increase supply but added he kept a close eye on demand issues.

Morrison said he had met the council of financial regulators after figures showing an increase in loans to investors.

Its very complex ... people who say you put up a tax and somehow you can buy a tax anywhere you like which is what the Labor party is saying thats a lie, he said.

Morrison attacked Labors negative gearing policy by saying it would increase rents, making it harder to save for a deposit. He praised rent-to-buy schemes that operate in the UK as one of a number of measures to make houses more affordable.

In a statement on Monday, shadow treasurer Chris Bowen said that flying policy kites and thought bubbles would not help first home buyers compete at auctions against property investors backed with the capital gains tax discount and negative gearing.

Bowen accused Morrison of continually attacking Labors plans ... at the same time as he backgrounds that Treasury is looking at similar reforms.

On Friday Morrison announced a plan to use government bonds to raise cheaper, long-term finance for affordable housing to be deployed through an affordable housing finance corporation.

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Scott Morrison says Liberals would never make federal preference deal with One Nation - The Guardian