Greens Back Labor's CGT and Negative Gearing Reforms in Senate in Exchange for Eight-Week NDIS Inquiry Extension

Greens Back Labor's CGT and Negative Gearing Reforms in Senate, Clearing Path for July 2027 Changes in Exchange for Extended NDIS Inquiry

Greens leader Senator Larissa Waters confirmed on June 23, 2026, that the party will support the package subject to amendments and an eight-week extension of the Senate inquiry into the government's proposed NDIS overhaul giving Labor the upper house votes it needed before the budget sitting break.

The Australian Greens confirmed on Tuesday, June 23, 2026, that they will support the Albanese government's legislation to reform capital gains tax and limit negative gearing to newly built properties, clearing the path for the changes to pass the Senate before Parliament rises for its mid-year break.

The deal

Greens leader Senator Larissa Waters confirmed the party will back the package, subject to amendments and an extended inquiry into the government's proposed NDIS overhaul. The government agreed to extend a Senate inquiry into its planned NDIS reforms by another eight weeks in exchange for the Greens' support.

While legislation containing the new-look CGT system and limits to negative gearing easily passed through the Labor-majority House of Representatives, the federal government needed the Greens' support in the Upper House to secure passage. The Coalition opposed the package.

Addressing reporters at Parliament House on Tuesday, Prime Minister Anthony Albanese said passage of the legislation would provide workers, businesses and investors with certainty about changes taking effect from July 1, 2027.

What the legislation does

The government's tax package replaces the existing 50 per cent capital gains tax discount with a discount based on inflation, coupled with a minimum 30 per cent rate on the taxable amount. It also limits negative gearing the ability to deduct rental property losses against other income to newly built properties only. Existing property investors who hold properties under the current rules will be grandfathered.

The reforms are among the most significant changes to property investment taxation in Australia since the Howard government reinstated the 50 per cent CGT discount in 1999.

Treasurer Jim Chalmers has been consulting business groups about potential carve-outs from the CGT discount changes, primarily aimed at low-capital, high-growth businesses including tech start-ups and junior miners. Small business advocates had separately requested that the annual turnover threshold for existing CGT concessions be lifted from $2 million to $10 million. Whether those carve-outs will be incorporated into the final legislation has not been officially confirmed by the Treasurer's office.

What the Greens secured

Beyond the eight-week NDIS inquiry extension, the specific amendments the Greens secured to the CGT and negative gearing package have not been officially detailed in full. Senator Waters confirmed the Greens secured concessions from the government as part of the deal, but declined to characterise the outcome as a complete win for renters, acknowledging the government had not gone as far as the Greens would have liked on housing affordability measures. The precise text of any amendments will be confirmed when the legislation is formally voted on in the Senate.

Business reaction

The CGT changes had alarmed start-ups, junior miners, investment managers, and small businesses, who warned the changes would dampen investment across the board, not just in housing. The Tech Council of Australia, the Australian Investment Council, and Australian Biotechnology Ltd had each appeared before the Senate Economics Legislation Committee inquiry into the Treasury Laws Amendment in June 2026 to raise concerns.

The government's consultation paper outlining options for business carve-outs, expected to be released within days of the deal, is still awaited at time of writing.

The NDIS dimension

The government's planned NDIS reforms a separate piece of legislation remain subject to ongoing Senate scrutiny. The inquiry extension the Greens secured as part of Tuesday's deal gives the committee an additional eight weeks to examine the government's proposed changes to the disability support scheme before reporting back. The NDIS reforms have not passed the Senate and are not part of the CGT and negative gearing package.

When do the changes take effect

Prime Minister Albanese confirmed the changes will take effect from July 1, 2027, giving property investors, businesses, and financial advisers approximately twelve months to adjust their portfolios and tax planning strategies before the new rules come into force.

The unique angle worth noting: the Greens secured an eight-week NDIS inquiry extension as the price of their Senate vote on a tax bill a trade that links two entirely unrelated policy areas in a single deal. The practical effect is that the disability support scheme, which serves over 700,000 Australians, will now face additional Senate scrutiny as a direct result of negotiations over property investment tax reform. That cross-portfolio leverage using a social services inquiry as a bargaining chip in a tax debate is the structural feature of the deal that has received the least attention in coverage focused on the CGT and negative gearing policy substance.