Labor, Greens cut deal on CGT and negative gearing

The federal Labor government has brokered a pivotal agreement with the Australian Greens to reform capital gains tax and negative gearing, signalling a major shift in the nation’s economic landscape. This breakthrough, finalised in Canberra this morning, ensures the passage of contested legislation by incorporating key crossbench demands that target property investment structures.

The Greens have pledged their critical support in the Senate in exchange for the termination of a loophole allowing self-managed super funds (SMSFs) to leverage debt for residential property acquisitions. Crucially, the deal also secures a strategic delay in the government’s proposed overhaul of the National Disability Insurance Scheme (NDIS), providing a temporary reprieve for a sector currently facing significant structural scrutiny.

“This policy pivot underscores a fundamental realignment in the federal housing strategy, where political compromise now dictates the pace of fiscal reform.”

Business groups and housing advocates are currently parsing the fine print, as the removal of SMSF borrowing rights is expected to cool competition in the mid-tier housing market. As the Treasurer prepares to table the updated fiscal projections, the political focus now shifts to the long-term impact these concessions will have on the broader Australian budgetary position.