Lead

The Albanese government has secured the support of the Greens for its negative gearing and capital gains tax changes, clearing the way for the passage of its budget centrepiece before parliament's winter break. The deal, announced on Tuesday, also extends a Senate inquiry into the government's proposed overhaul of the National Disability Insurance Scheme (NDIS) by two months, a move that may complicate the passage of that legislation.

Coverage Comparison

According to The Guardian's reports, the Greens' support for the tax changes was the result of negotiations that secured several concessions from the government. The minor party will support the tax bills, which the government says will make it easier for Australians to buy their first home and cut taxes for millions of workers. However, the Greens will still vote against the NDIS legislation, which it considers 'cruel' and harmful to those expected to be removed from the scheme.

The tax changes themselves have been subject to a series of adjustments since their announcement in the budget. The Guardian reported that the government's latest concessions, unveiled last week, include increasing the annual turnover threshold for small businesses to qualify for existing capital gains tax concessions from $2 million to $10 million, as well as a special carve-out for 'innovative' start-ups to access a 50% discount. These changes were designed to neutralise what the government called 'scare campaigns' against the proposal.

The deal with the Greens also includes an agreement to remove a loophole allowing investors with self-managed super funds to continue taking advantage of the tax breaks, and to wind back some of the treasurer's discretionary powers to make rules. The Greens say they have also negotiated amendments to limit the minister's powers to make blanket cuts to categories of participant supports in the NDIS.

Key Claims

  • Labor's tax changes passed through the Senate with the Greens' support, as reported by The Guardian.
  • The NDIS inquiry has been extended for two months, with plans for new public hearings and more time for a committee process.
  • The Coalition's support is critical to passing the NDIS bill.
  • Labor announced concessions to its capital gains tax proposal, including increasing the annual turnover threshold for small businesses to qualify for the existing capital gains tax concessions from $2m to $10m.
  • The opposition leader, Angus Taylor, has called for the bill to be scrapped.
  • The Greens will still vote against the NDIS legislation.
  • The government has agreed to remove a loophole allowing investors to continue taking advantage of tax breaks.
  • The inquiry into the NDIS changes has already heard testimony from participants and experts in the field.

Perspectives

Labor Government: The government, in a joint statement from the prime minister, treasurer, and finance minister, hailed the Greens' announcement as a step closer to delivering tax reforms that will make it easier for Australians to buy their first home, cut taxes for over 13 million workers, and better align the tax treatment of labour and asset income.

The Greens: The minor party has agreed to support the tax changes but will vote against the NDIS legislation, which it considers harmful to people with disability. The Greens have secured concessions including an extended inquiry and amendments to limit ministerial powers.

The Coalition: The opposition, led by Angus Taylor, has called for the tax bill to be scrapped. The Coalition's support is now seen as critical to passing the NDIS bill, and there are concerns that the tax deal may have complicated that effort.