What Labor agreed to in order for tax change support

24 Jun What Labor agreed to in order for tax change support

WHAT THE GOVERNMENT WANTS PASSED

* Laws stemming from the federal budget would limit negative gearing to new builds from July 2027, while scrapping a 50 per cent discount on the capital gains tax and replacing it with a minimum 30 per cent rate tied to inflation

* The federal government also included in the laws a $250 income tax offset and a $1000 instant tax deduction for workers

* Labor needed the Greens to pass the contentious laws through parliament after the coalition came out against the measures

* The Greens agreed to help pass the tax measures in exchange for concessions on the budget bills and reforms to the NDIS

THE CHANGES TO TAX LAWS

* Amendments will also be introduced to the tax changes closing loopholes where people can buy property through self-managed super funds as a way to avoid the increase to capital gains tax

* Those changes are set to cost the budget $50 million over the next four years

* The treasurer will also have powers to extend the 50 per cent discount to more assets reined in

THE NDIS CHANGES

* A Senate inquiry into the NDIS will also be extended in exchange for the Greens’ support

*A snap three-day inquiry will instead be extended by eight weeks, with a final report to be handed down by August 14

* Opponents of the NDIS changes had accused the government of previously trying to race the measures through parliament

* The Greens are still opposed to the NDIS changes, with the party indicating they will try and put further road blocks to stop the measures passing

* Amendments will be put in place limiting ministerial powers to cut recipient budget

Andrew Brown
(Australian Associated Press)