Labor reaches deal with the Greens to pass changes to capital gains tax and negative gearing reforms
Summary
The Labor government has reached a deal with the Greens to pass changes to capital gains tax and negative gearing rules in Australia. In return, the Greens secured a delay and some changes to the government’s controversial plans to reform the national disability insurance scheme (NDIS).Key Facts
- The Greens agreed to support Labor’s tax reform bills after certain changes, including closing a tax loophole for self-managed super funds.
- The reforms aim to help first-time home buyers, reduce taxes for over 13 million workers, and better balance taxes on income from work and assets.
- The capital gains tax discount will move from a 50% cut on profits to a system based on the cost of assets starting in July 2027.
- Negative gearing tax breaks will end for investment properties bought after May 2026, except for new builds and some government housing projects.
- The Greens won an eight-week extension to a Senate inquiry into NDIS reforms and secured limits on the government’s power to cut categories of disability support.
- The government plans to save $37.8 billion in four years by tightening NDIS eligibility and introducing independent assessments for all participants.
- The Greens negotiated protections to ensure people are not forced to undergo harsh treatments to receive NDIS support.
- The Coalition party opposes the deal and had offered a longer extension to the NDIS inquiry.
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