Overview
- The Greens agreed on Tuesday to support the first tranche of Labor’s budget tax laws after Labor accepted an amendment to ban future limited‑recourse borrowing arrangements for self‑managed superannuation funds, with existing and in‑train contracts protected for a defined period.
- The tax package keeps limits on negative gearing for established properties, replaces the 50% capital gains tax discount with inflation indexation plus a 30% minimum, and includes a $250 Working Australians offset and a $1,000 standard deduction for workers.
- Labor widened concessions to ease backlash by raising the small‑business turnover threshold for CGT concessions to $10 million and promising carve‑outs for innovative start‑ups, but tax experts called the package rushed and the SMSF sector said it was blindsided.
- As part of the trade‑off the parliament’s snap inquiry into the NDIS was extended by eight weeks to report on August 14, with modelling and submissions suggesting the proposed NDIS changes could cut about $37.8–$38 billion over four years and remove roughly 160,000–240,000 people from the scheme.
- Political fallout is growing: the Greens say they will continue to oppose the NDIS bill despite the deal, the Coalition vows to repeal the tax changes if elected, and commentators warn the package concentrates short‑term risk on disabled people, investors and Labor’s standing in polls.