Overview
- Labor’s tax package passed Parliament on Thursday after the party won Greens support in an 11th‑hour agreement that closed an SMSF borrowing loophole and delayed proposed NDIS changes.
- The capital gains tax discount will be replaced by cost-base indexation with a 30 percent minimum tax rate for most assets, a change scheduled to take effect on 1 July 2027.
- Negative gearing will be limited to new-build properties while existing arrangements are grandfathered for purchases or contracts completed by 7:30pm AEST on 12 May 2026.
- Treasury officials told senators that current grandfathering would lapse if part of a jointly owned property must be transferred, prompting the government to commit to later legislation to protect heirs and divorcees and to secure crossbench support.
- The package also locks in worker measures including a $250 Working Australian Tax Offset from July 2027 and a $1,000 instant deduction for 2026–27, and has provoked sharp political backlash over trust and economic impact concerns.