Labor’s tax deal with the Greens is a crucial win – but its NDIS changes could pay the price
Summary
The Labor government secured Senate support for new tax changes by making a deal with the Greens, which included extending an inquiry into reforms to the National Disability Insurance Scheme (NDIS). While the tax reforms passed, the extended inquiry and opposition in the Senate may make it harder to pass the NDIS cost-cutting reforms later.Key Facts
- Labor won Senate approval for tax changes on negative gearing and capital gains tax.
- The deal with the Greens extended the NDIS inquiry by two months with additional hearings.
- The NDIS reforms aim to cut costs but face opposition from disability advocates and some politicians.
- The Coalition, usually critical of the NDIS’s rising costs, is unhappy with Labor’s deal with the Greens and may not support the NDIS reforms.
- The Greens do not support the NDIS bill and want it scrapped but agreed to some amendments limiting government powers and monitoring automated decisions.
- The extended inquiry allows more time for public input and advocacy against the NDIS reforms.
- Labor wants to present the tax changes as helping working people and leveling the tax system between wages and wealth.
- The political environment includes challenges from parties like One Nation, which is critical of immigration and economic policies.
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