The Albanese government's contentious property tax reforms are set to pass the Senate after a deal was reached with the Greens. The minor party announced its support on Tuesday morning, clearing the path for Labor to pass its budget centrepiece before the winter break.
Details of the Deal
The Greens agreed to back the tax bills after the government agreed to close a loophole allowing investors with self-managed super funds to continue benefiting from the tax breaks. Additionally, ministerial powers that could reverse the reforms in the future were removed.
In a joint statement, Prime Minister Anthony Albanese, Treasurer Jim Chalmers, and Finance Minister Katy Gallagher noted the Greens' announcement. "The Albanese government is another step closer to delivering its tax reforms for workers, home buyers, and businesses," they said. "These reforms will make it easier for Australians to buy their first home, cut taxes for over 13 million workers, and better align the tax treatment of labour and asset income."
NDIS Changes Delayed
As part of the negotiations, the Greens secured an eight-week extension to a Senate inquiry into controversial changes to the National Disability Insurance Scheme (NDIS). The minor party also negotiated amendments to limit the minister's powers to make blanket cuts to categories of participant supports.
The Greens will still vote against the NDIS legislation, which they consider "cruel" and harmful to the more than 240,000 people expected to be forced off the scheme under the government's cost-saving plan.
Tax Reform Details
Under the proposed changes, the capital gains tax discount of 50% on profit from sold assets will be replaced with a cost-based indexation model from July 2027. Negative gearing concessions will no longer apply to investment properties bought after 7:30 pm on 12 May 2026, with exceptions for new builds and some government housing programs.
The government last week announced several changes to its capital gains tax proposal, including winding back the treasurer's discretionary powers to address one of the Greens' major concerns.
NDIS Inquiry Extended
The Senate inquiry into legislation to contain the ballooning cost of the NDIS was scheduled to table its findings on Tuesday but was delayed twice last week. Guardian Australia reports the inquiry will now be extended until 14 August, allowing extra time for public hearings and consideration of thousands of submissions.
The committee heard widespread concerns from disability advocates, providers, and states about Labor's plan to save $37.8 billion over four years, including tightening eligibility criteria and subjecting all participants to independent functional assessments.
Amendments and Protections
The legislation would give the minister power to cut entire categories of support, which Health Minister Mark Butler intends to use to reduce funding for support workers. Greens disability spokesperson Jordon Steele-John negotiated an amendment to protect other categories, including funding for daily living, assisted technology, consumables, and home modifications.
Supports for daily health needs, medical appointments, or getting to work would also be protected. The Greens secured guarantees that people would not need to subject themselves to restrictive practices, such as forced medication, to meet new requirements for accessing the NDIS.
Political Fallout
The deal between Labor and the Greens is expected to infuriate the Coalition, which offered to work with the minor party to extend the NDIS inquiry for six months in exchange for more scrutiny of the tax bills. The government will need opposition support to pass the NDIS after the inquiry publishes its findings in mid-August.
Health Minister Mark Butler has been contacted for comment.
