What is the core reason the Australian government made a deal with the Australian Greens?

The Australian government secured an agreement with the Australian Greens to guarantee the passage of its first tranche of budget tax reform legislation through the Senate.

What are the specific tax policy changes included in the new legislation?

The legislation replaces the 50% capital gains tax discount with cost base indexation and applies a 30% minimum tax on capital gains starting July 1, 2027.

What concessions did the Australian Greens secure in exchange for their support?

The Australian Greens secured a ban on self-managed super funds borrowing money to purchase residential properties. Additionally, the agreement removes the treasurer's ability to unilaterally add new asset classes to the 50% capital gains tax discount and delays a separate National Disability Insurance Scheme inquiry for eight weeks.

What does the timeline look like for the implementation of these tax reforms?

The Australian government will pass the capital gains tax and negative gearing overhaul in the Senate on Thursday, with the new 30% minimum tax framework officially taking effect on 1 July 2027. Meanwhile, the separate National Disability Insurance Scheme inquiry will be delayed for eight weeks to hold additional legislative hearings.

Image for illustrative purposes only. Not a real photo.

Labor budget bill to pass with Greens support

Written by Heidi Cuthbert Published Jun 23, 2026, 3:45 AM

The Australian government will pass its first tranche of tax reform legislation after securing the support of the Australian Greens.
The immediate political outcome ensures the government's overhaul of capital gains tax and negative gearing will pass the Senate.
The agreement follows government concessions, including a ban on self-managed super funds borrowing money to buy residential properties.

The Australian government has secured the passage of its first tranche of budget tax reform legislation after reaching an agreement with the Australian Greens on June 23.

The agreement ensures that the proposed overhaul of capital gains tax and negative gearing will pass the Senate, contrasting with earlier market uncertainty over whether the government could secure minority party support.

“Economic reform is never easy, especially tax reform, but it’s worth it when you are delivering that real change that the prime minister has been referring to,” said the Australian Government Treasurer Jim Chalmers.

The secondary details of the deal reveal that the Greens secured a ban on self-managed super funds borrowing to buy residential properties, alongside an eight-week delay to a separate National Disability Insurance Scheme enquiry.

The legislation introduces a framework to replace the 50% capital gains tax discount with cost base indexation and apply a 30% minimum tax on capital gains starting July 1, 2027.

Following the announcement, the Australian government share market index, ASX 200 was unchanged at 7,800.

The broader business strategy behind the tax overhaul is to direct financial support towards new housing supply by limiting negative gearing benefits exclusively to new residential builds.