Deal Struck in Canberra as Greens Back Labor Tax Changes
The Australian Greens have reached an agreement with the Albanese Labor government to support key tax reforms in exchange for concessions on proposed changes to the National Disability Insurance Scheme. The deal, announced on 23 June 2026, allows the passage of legislation targeting capital gains tax and negative gearing while delaying contentious NDIS measures.
Under the agreement, the Greens will back the government's budget tax package in the Senate this week. This includes measures to increase the capital gains tax discount and restrict negative gearing for new investments. In return, Labor has committed to extending a Senate inquiry into the NDIS reforms by eight weeks and introducing amendments to limit ministerial powers over participant supports.
Background to the Tax Reforms
The tax changes form part of the May 2026 federal budget aimed at improving housing affordability. They target perceived loopholes that benefit property investors, including provisions affecting self-managed superannuation funds. The reforms seek to discourage speculative investment and redirect resources toward first-home buyers.
Negotiations between Labor and the Greens focused on preventing wealthy investors from using SMSFs to purchase residential properties with borrowed funds. Amendments secured by the Greens also remove certain ministerial discretions that could have wound back the reforms in the future.
NDIS Reforms and the Greens' Position
The National Disability Insurance Scheme, established to provide support for Australians with significant and permanent disabilities, faces proposed savings measures estimated in the billions. Labor's overhaul includes stricter eligibility criteria and expanded ministerial powers to adjust supports, with projections suggesting impacts on tens of thousands of participants.
The Greens have long campaigned against these changes, describing them as cruel and unjust. Party leaders have stated they will use every available lever, including potential blockades, to prevent the cuts from taking effect even after the extended inquiry period.
Key Elements of the Agreement
The deal provides the Greens with an eight-week extension to the parliamentary inquiry into the NDIS changes. This gives disability advocates additional time to present evidence on the potential effects of the reforms.
Amendments to the NDIS legislation will narrow the scope of ministerial authority, preventing blanket cuts to categories of supports. The tax bill is expected to pass the Senate before the winter recess.
Photo by Marcus Reubenstein on Unsplash
Stakeholder Reactions
Disability advocates have welcomed the delay but remain concerned about the long-term trajectory of NDIS funding. The Greens' campaign website highlights ongoing efforts to protect the scheme from budget-driven reductions.
Opposition parties have criticised the arrangement as a political trade-off that prioritises tax policy over disability support. Some commentators describe it as a pragmatic compromise in a hung parliament scenario.
Economic and Social Context
Australia's NDIS has grown rapidly since its full rollout, with annual costs exceeding $50 billion. Proponents of reform argue for sustainability, while critics emphasise the scheme's role in supporting vulnerable citizens and preventing higher long-term social costs.
The tax measures are projected to contribute to budget repair while addressing intergenerational housing inequality. Economists note that changes to negative gearing and CGT have been debated for years across multiple governments.
Parliamentary Process Ahead
The tax legislation is scheduled for Senate debate and passage in the coming days. The extended NDIS inquiry will run into mid-August 2026, allowing further scrutiny and potential amendments.
The Greens have signalled they will not support the NDIS bill in its current form and may seek to block or significantly amend it during future sittings.
Implications for Disability Support
Any delay provides breathing room for participants and providers to prepare or advocate for adjustments. The scheme supports hundreds of thousands of Australians, and changes could affect access to therapies, equipment, and personal care.
Advocates stress the importance of evidence-based reforms that maintain the scheme's core promise of choice and control for people with disability.
Future Outlook and Potential Developments
With the winter break approaching, the deal clears one legislative hurdle but leaves the NDIS issue unresolved. Further negotiations or public campaigns are likely as the inquiry progresses.
Broader discussions around revenue raising, including options like a gas export tax, continue in political circles as alternatives to service cuts.
Public and Media Response
Media outlets across Australia have covered the development extensively, highlighting the trade-off between tax policy progress and NDIS uncertainty. Public sentiment appears divided, with support for housing measures tempered by concerns over disability services.
Social media discussions reflect strong advocacy from disability communities urging the government to reconsider the scale of proposed savings.