Labor’s first budget bill, including CGT changes, to pass with Greens support
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The news: Labor will pass its first tranche of budget legislation with support from the Greens, after offering concessions on the bill and a separate NDIS overhaul.
The context: Both parties confirmed on Tuesday that the government’s proposed overhaul of capital gains tax and negative gearing will pass the Senate on Thursday.
The Greens have secured a series of amendments to the tax bill, and concessions on a separate overhaul of the NDIS, which the party will oppose regardless.
Speaking alongside Prime Minister Anthony Albanese, Treasurer Jim Chalmers declared it was an “important day for tax reform”.
“Economic reform is never easy, especially tax reform, but it’s worth it when you are delivering that real change that the prime minister has been referring to,” he told reporters.
In return for their support for the tax bill, the Greens have secured:
- A ban on self-managed super funds borrowing money to purchase residential properties
- The removal of the treasurer’s ability to unilaterally add any additional asset classes to become eligible for the 50% CGT discount.
A bill to overhaul the NDIS will also be delayed for eight weeks, with an inquiry into the changes to hold additional hearings.
The Greens said, while it would oppose the bill regardless, the extended inquiry would provide additional time to pressure Labor to kill it entirely.
“There’s a lot of work for us to continue to do, and … we’ve already started it,” Health Minister Mark Butler said.
“We’re not going to sit on our hands while the other eight weeks of inquiry [is] underway.”
The NDIS overhaul still remains likely to pass the Senate with the Coalition’s support when parliament returns in August.
What they said: “I expect that just as the three right–wing parties have opposed every tax cut, every pay rise for workers, every cost-of-living measure, every policy to build more homes and help more people buy their first time, they will oppose these measures,” Albanese said.
The sources: Albanese government press conference, Greens press conference
