Key facts
- The Greens will support Labor's capital gains tax and negative gearing reforms.
- The deal involves concessions on the National Disability Insurance Scheme (NDIS).
- The NDIS inquiry has been extended until August 14.
- The government will remove a loophole for self-managed super funds regarding tax breaks.
- The Greens secured amendments to limit the minister's power to cut NDIS support categories.
The Australian Greens have agreed to support the Albanese government's proposed changes to capital gains tax and negative gearing. This agreement was reached after the government conceded to several demands regarding the National Disability Insurance Scheme (NDIS), including an eight-week extension for a Senate inquiry into the NDIS reforms and amendments to limit the minister's power to cut support categories.
The Greens had previously voiced strong opposition to the NDIS cost-saving plan, calling it "cruel" and expecting it to affect over 240,000 participants. As part of the deal, the government will also remove a loophole allowing investors with self-managed super funds to benefit from tax breaks and will limit ministerial powers to reverse the reforms in the future.
The proposed tax changes include altering the capital gains tax discount from 50% to a cost-based indexation model from July 2027. Negative gearing concessions will also be restricted for investment properties purchased after May 12, 2026, with exceptions for new builds and certain government housing programs.
The NDIS inquiry, initially scheduled to report on Tuesday, has been extended to August 14. This extension allows for further consideration of public submissions and hearings concerning the government's plan to save $37.8 billion over four years by tightening eligibility and introducing independent functional assessments. The Greens' disability spokesperson, Jordon Steele-John, successfully negotiated amendments to protect essential support categories like daily living, assisted technology, and home modifications from being cut by the minister. Guarantees were also secured to prevent NDIS access from being contingent on accepting restrictive practices.
The Coalition, which had offered to work with the Greens on extending the NDIS inquiry in exchange for scrutiny of the tax bills, is expected to be critical of this agreement. The government will still require opposition support for the NDIS legislation after the inquiry concludes.