Full Breakdown
Labor-Greens Deal Clears Path for Tax Reform, Delays NDIS Overhaul
6/25/2026, 9:49:39 PM
Core Event
On 23 June 2026 the Albanese government secured the Greens’ ten-vote Senate support for its tax package. In exchange the Greens obtained an eight-week extension to the Senate inquiry into the National Disability Insurance Scheme (NDIS) reforms.
Background & Context
The May 2026 budget proposed ending the 50 % CGT discount, replacing it with cost-base indexation and a 30 % floor, and limiting negative gearing to properties bought before 12 May 2026, while targeting $37.8 billion in NDIS savings over four years.
Key Figures & Groups
Prime Minister Anthony Albanese, Treasurer Jim Chalmers, Finance Minister Katy Gallagher, Health Minister Mark Butler, Greens leader Larissa Waters, disability spokesperson Jordon Steele-John, opposition leader Angus Taylor, and shadow treasurer Tim Wilson.
Timeline
Key dates: May 2026 budget; 12 May 2026 negative-gearing cut-off; 23 June 2026 deal; 14 August 2026 NDIS report.
Data & Statistics
NDIS costs $50 billion a year; reforms aim to save $37.8 billion.
Tax changes should raise $3.6 billion by 2029-30, $3.1 billion from negative gearing.
Closing the SMSF loophole (affecting <1 % of residential borrowing) is expected to add $50 million over four years.
$250 tax offset lifts the tax-free threshold to $19,985; $1,000 instant deduction applies to work expenses; small-business CGT concessions now cover firms with turnover up to $10 million.
Up to 240,000 NDIS participants could be displaced, with an initial plan cutting support for 160,000 people.
Why It Matters
The reforms aim to improve generational equity in housing while adding $3.6 billion to the budget, and the NDIS delay preserves disability services pending further review.
Official Statements & Responses
Albanese said the reforms help “hard-working Australians … own their own home.”
Chalmers called the package “carefully designed” and noted the $3.6 billion revenue boost.
Gallagher said the law will be delivered in “tranches” to fine-tune details, while Butler defended the NDIS plan as “the right package.”
Criticism & Opposition
The Coalition warned the tax changes will “hurt housing supply” and raise rents.
Pauline Hanson called the reforms a “widow tax” that penalises grieving partners, and Master Builders’ Denita Wawn said the package is a “hit to construction jobs and housing supply.”
Conflicting Reports & Gaps
Revenue forecasts differ: Treasury cites $3.6 billion total, while officials later confirmed $3.1 billion from negative gearing alone.
The timing of the “widow tax” back-down was not disclosed, and details of the second tranche for trusts and startup carve-outs remain pending.
Verbatim Quotes
- “Most Australians have nothing to sell but their time, nothing to give but their hard work.” — Anthony Albanese, Prime Minister
- “We have made clear from the get-go, from the evening the budget was announced, that we were aware that there would be tranches of legislation,” — Katy Gallagher, Finance Minister
- “dodgy, dishonest and dangerous” — Tim Wilson, Shadow Treasurer
- “continue to fight night and day” — Jordon Steele-John, Greens disability spokesperson
What’s Next
Labor will table a second bill for trusts, startup CGT carve-outs and further NDIS tweaks; the NDIS inquiry report is due 14 August, after which coalition support will be needed to pass the full reforms.
