Australia's Labor‑Greens tax package passes Senate amid backlash

The Albanese government secured a deal with the Greens to pass a sweeping tax overhaul through the Senate. The legislation scraps the 50 % capital gains tax discount, tightens negative‑gearing rules and ends the loophole that allowed self‑managed super funds (SMSFs) to borrow for residential property. In return, the Greens obtained an eight‑week extension of a parliamentary inquiry into the National Disability Insurance Scheme (NDIS) reforms.

The package is promoted by Housing Minister Clare O’Neil as the biggest housing‑tax reform in a generation, promising $2,800 tax cuts per taxpayer and $33 billion in tax hand‑outs, with an expectation of helping 75 000 rental households into home ownership. Opposition leaders, including Senator Michaelia Cash, denounce the deal as a “dirty” breach of pre‑election promises and warn it will hurt property investors, women retirees and those relying on SMSFs for retirement savings. Industry groups such as PIPA and REBAA have also criticised the SMSF borrowing restriction, arguing it affects a small share of the market and distracts from broader housing‑supply issues. The reforms are slated to become law by the end of June 2026.