Labor reaches deal with Greens to pass changes to capital gains tax and negative gearing reforms
Labor and the Greens have reached a deal on property tax reforms, clearing the way for Labor's controversial budget proposals to pass before federal parliament breaks for winter.
Intelligence analysis by Qwen 2.5 (3B)
Labor and the Greens have agreed to support changes to capital gains tax and negative gearing. The Greens will delay and tweak some of these reforms in exchange for extending an inquiry into disability scheme changes.
Labor and the Greens agreed to make some changes to how people pay taxes on their homes and investments. The Greens got more time to look at rules for helping disabled people, but they still don't like these changes.
Analysis
{"# Capital Gains Tax Changes":"> Labor has agreed to change the capital gains tax discount from a 50% reduction to an indexation model based on cost. This will affect investors who have self-managed super funds.\n\n
Negative Gearing Reforms for Investment Properties:\n> The Greens have also negotiated that negative gearing concessions would no longer apply to investment properties bought after May 12, 2026, with exceptions for new builds and some government housing programs. This change will affect investors who use negative gearing to reduce their tax liability on property investments.","# Disability Scheme Changes":"> The Greens have secured an eight-week extension to a Senate inquiry into the NDIS changes. They also negotiated several amendments, including limiting the scope of the minister's powers to make blanket cuts to categories of participant supports.\n\n
Key Amendments for Participants:\n> The Greens will protect other categories of support from being cut by the minister, such as funding allocated for daily living, assisted technology, consumables and home modifications. They also secured guarantees that participants would not be forced into restrictive practices.","# Coalition Reaction":"> The Coalition offered to work with the Greens on extending the NDIS inquiry for six months in exchange for more scrutiny of the tax bills. However, Labor will need to draft a second piece of legislation to deal with trusts and a special capital gains tax concession for start-ups."}
Key points
- Labor and the Greens have agreed to support property tax reforms
- The Greens will delay some changes to negative gearing and capital gains tax
- There is an eight-week extension for the NDIS inquiry
The deal could help stabilize Australia's housing market by making it easier for people to buy homes. It may also provide some relief for the disability community as the Greens have secured protections for their funding and support categories.
Some disabled Australians might lose access to important services if the NDIS changes go through, despite the Greens' efforts to protect certain supports. The Coalition's offer of a six-month extension on the NDIS inquiry could be seen as a compromise that doesn't fully address their concerns.
