The Coalition has declared war on what it calls Labor's “toxic taxes” after the federal government reached a deal with the Greens to pass its controversial negative gearing and capital gains tax changes. The compromise, which includes extending scrutiny of the government’s proposed NDIS reforms, is expected to allow the legislation to pass the Senate this week.
Housing Minister Defends Agreement as Breakthrough
Housing Minister Clare O’Neil defended the agreement, labelling it a breakthrough that would deliver tax cuts to 13 million workers, help renters enter the housing market and create a fairer tax system. “This is the biggest reform to housing and taxation our country has seen for a generation,” O’Neil told Sunrise. “The bill that the parliament will now pass is going to give a tax cut to every single one of Australia’s 13 million workers. It’s going to create a fairer housing system, bringing 75,000 rental households into home ownership.”
Opposition Accuses Prime Minister of Breaking Promises
Opposition Senate leader Michaelia Cash launched a scathing attack on Prime Minister Anthony Albanese, accusing him of breaking election promises. “Mr Albanese has a massive credibility problem. Australians now know he lied to them. He lied to them 50 times prior to the last election,” Cash said. “There would be no changes to negative gearing. There would be no changes to capital gains tax. Well, guess what? The prime minister is a liar.” Cash also accused Albanese of breaking his promise not to do deals with the Greens, calling it a “dirty deal” to ram through “toxic tax changes”.
NDIS Reforms Included in Deal
The deal includes an eight-week inquiry into NDIS reforms, with the Greens requesting more voices be heard in the debate. O’Neill said the NDIS was spending at an unsustainable rate and needed reform. The Coalition has vowed to oppose the tax changes and campaign against them at the next election, while still supporting Labor’s tax cuts. “We will support the tax cut. Absolutely,” Cash said. “And we will keep it. But I tell you, we’re going to call out your lies. Say goodbye to aspiration and hard work in Australia, because Albanese is about to kill it.”
Tax Package Details
The tax package will deliver $2,800 in tax cuts to every Australian taxpayer, according to the government. The changes aim to reduce housing costs and increase home ownership, but the Coalition argues they will harm the economy and discourage investment.
