Australia’s Labor government has reached an agreement with the Greens to secure parliamentary support for its proposed tax reforms, clearing a major hurdle before the winter recess. In return, the government agreed to delay legislation that would overhaul the National Disability Insurance Scheme (NDIS), allowing additional time for parliamentary scrutiny. The agreement follows weeks of negotiations between the two parties.
The tax package includes changes to negative gearing and capital gains tax, measures that the government says are intended to improve housing affordability and create a fairer tax system. Labor also agreed to close a loophole allowing self-managed superannuation funds to borrow for residential property investment. The Greens described the changes as a step forward, while arguing that broader reforms remain necessary.
One of the key concessions involves delaying the government’s proposed overhaul of the National Disability Insurance Scheme until at least August. The extension will allow a Senate inquiry to continue examining concerns raised by disability organisations, advocacy groups and legal experts. More than 4,000 submissions have already been received during the inquiry process.
The proposed NDIS reforms aim to slow the growth of one of Australia’s largest public spending programmes by tightening eligibility rules and changing how support is delivered. Ministers argue the reforms are necessary to ensure the scheme remains financially sustainable over the coming decades. Critics, however, say the proposals could reduce essential support for vulnerable Australians.
Greens leader Larissa Waters said the party would support the tax legislation but would continue opposing the current form of the NDIS bill. She said extending the inquiry would provide more time for public consultation and allow concerns raised by people with disabilities to be examined in greater detail. Disability advocacy groups welcomed the additional scrutiny.
Prime Minister Anthony Albanese’s government has defended the compromise, arguing that passing the tax reforms remains a priority while allowing further discussion on disability policy. Ministers said the delay would not change their long-term objective of making the NDIS financially sustainable. They also acknowledged that postponing the reforms would affect projected budget savings.
The agreement has prompted criticism from opposition politicians, who accused Labor of making political concessions to secure support for its broader legislative agenda. Some business groups also questioned whether the tax changes could affect investment decisions, while housing advocates continued to debate whether the reforms would significantly improve affordability.
The Senate is expected to vote on the tax legislation before Parliament begins its winter break, while the NDIS reforms will remain under committee review. The extended inquiry is expected to examine additional evidence from disability organisations, legal experts and government officials before lawmakers consider the legislation again.
