The Albanese government has turned to the Greens to pass controversial capital gains tax and negative gearing changes before parliament rises for the winter break.
Labor has been expected to rely on the Greens to pass the reforms in exchange for concessions on its NDIS overhaul, which would strip about $17 billion from the scheme.
Sky News understands the government is willing to extend scrutiny of the NDIS reforms beyond its self-imposed July 1 deadline, sacrificing some budget savings.
In exchange the Greens could agree to pass Labor’s plan to scrap negative gearing for future buyers and implement a minimum 30 per cent capital gains tax.
The Greens have been highly critical of the NDIS changes, with disability spokesman Jordon Steele-John calling for the legislation to be withdrawn.
“To my crossbench colleagues, and to the members of the National and Liberal Party, whatever you may think of the NDIS, these cuts go too far,” he said.
Opposition Leader Angus Taylor accused Labor of striking a “dirty deal” with the Greens on Monday, warning voters should be concerned about the arrangement.
“We’ve never negotiated with the Labor Party on these tax changes. We’ve said from the start they should be axed right from the beginning,” he told reporters.
“Now it’s true that Labor appears to be doing a dirty deal with the Greens and you should always be very worried when Labor does a dirty deal with the Greens.
“This is Labor shifting to the crazy left that they love to do. They love an excuse and they’ve clearly found the excuse.”
Mr Taylor said the Coalition had never negotiated with Labor on the tax package and maintained it should be scrapped entirely.
He also suggested the full terms of any agreement between Labor and the Greens remained unclear.
The government’s housing tax reforms will replace the existing 50 per cent capital gains tax discount with an inflation-based model.
The package will also restrict future negative gearing to newly built homes from July 1, 2027, but grandfather arrangements for existing owners.
Labor has argued the changes are necessary to improve housing supply and affordability.
Industry Minister Tim Ayres defended the reforms on Monday, saying: “Young Australians have felt like they’ve been locked out.”
“It is a fairer market because of the difficult but necessary changes that the government has made here,” he said.
The Coalition has backed additional scrutiny of the NDIS overhaul but says the same treatment should be applied to the tax package.
Business groups have also intensified their campaign against the tax changes, including the Australian Chamber of Commerce and Industry (ACCI).
ACCI chief executive Andrew McKellar urged senators on Monday to reject the tax reform package.
“A reminder to the senate, it’s not too late. You have the opportunity to do the right thing,” Mr McKellar said.
“You have to opportunity to push back against these proposed changes which will damage business investment, they will damage the Australian economy.”
The next fortnight has shaped up as a make-or-break period for the Albanese government.
If Labor does not pass its NDIS or tax reform packages it will need to wait until at least mid-August 2026.