Labor and Greens strike deal on tax reforms and NDIS inquiry extension
The Albanese government has secured Greens support for contentious tax legislation in exchange for removing self-managed super fund loopholes and extending the Senate inquiry into NDIS reforms until 14 August.
The Australian Labor government has reached a political agreement with the Greens to pass significant changes to capital gains tax and negative gearing rules. The deal clears the path for the legislation to proceed before federal parliament rises for the winter break, with the Greens committing to support the tax bills in exchange for specific concessions and a delay to the government’s National Disability Insurance Scheme reforms.
Under the agreed terms, the capital gains tax discount will transition from 50 per cent to a cost-based indexation model from July 2027. Negative gearing concessions will cease to apply to investment properties purchased after 7:30 pm on 12 May 2026, with exceptions maintained for new builds and certain government housing programs. The government also agreed to remove a loophole allowing investors with self-managed super funds to continue accessing these tax breaks and retained ministerial powers to reverse the reforms in the future.
The agreement includes an eight-week extension to a Senate inquiry into the NDIS legislation, delaying the inquiry’s findings until 14 August. The Greens will vote against the NDIS bill, which aims to save $37.8 billion over four years by tightening eligibility and introducing functional assessments. However, the minor party negotiated amendments to limit the health minister’s power to cut entire categories of support, protecting daily living, assisted technology, consumables, and home modifications.
Opposition leader Angus Taylor criticised the arrangement as a dangerous deal that would harm business investment and housing supply, pledging to repeal the tax changes if the Coalition is elected. The opposition has offered to extend the NDIS inquiry for six months in exchange for greater scrutiny of the tax bills, stating it remains committed to working with the government to ensure the scheme’s financial sustainability.
Health Minister Mark Butler maintained that the NDIS reforms were necessary despite the backlash, describing the changes as hard but carefully designed. The Greens leader, Larissa Waters, acknowledged the tax reforms were a small step in the right direction but vowed to continue fighting for renters and young Australians. The government will need to draft separate legislation for trusts and startup capital gains tax concessions, requiring further negotiations with the Greens.
