The federal government’s planned changes to negative gearing and the capital gains tax (CGT) discount are expected to pass parliament after Labor reached a deal with the Greens. The agreement involves a number of adjustments, including a plan to close a self-managed super fund loophole and to delay planned National Disability Insurance Scheme (NDIS) changes.

Under the reform approach described in the coverage, negative gearing would be removed for established residential properties. For CGT, the long-standing 50% CGT discount would be replaced with a system based on cost base indexation and a 30% minimum tax rate on capital gains. The changes are also expected to include limitations affecting self-managed super funds, including restrictions around certain borrowing arrangements used to buy property while protecting other fund assets.

The article also says the timing of the deal is designed to avoid delays caused by parliament rising for the winter break, with the legislation expected to pass by the end of the week. It further notes that additional carve-outs—such as those relating to innovative firms—would be handled in a future bill before the reforms take effect from 2027.