Prime Minister Anthony Albanese will present controversial changes to negative gearing and capital gains tax (CGT) to parliament on Thursday, pushing for speedy passage while flagging possible carve-outs for businesses beyond the startup sector. The draft laws also include Labor's pre-election promise of a $1,000 standard tax deduction and the $250 'working Australians tax offset' announced in the budget.
Albanese wants the 'core' elements of the plan through parliament by early July, setting up a challenge for the Coalition and One Nation, who would have to vote against the tax cuts if they choose to oppose the budget measures. However, Labor MPs expect heated debate at Tuesday's caucus meeting amid a backlash from investors and startup founders.
Guardian Australia understands some within Labor are angry that the budget message has drifted away from intergenerational fairness in the housing market, and that the government has struggled to explain the benefits of replacing the 50% CGT discount with an inflation-based model. Giving exemptions to some businesses would 'take some heat off', one MP said.
Albanese challenged opposition leader Angus Taylor to support the plan, even as the Coalition regroups through strong opposition. Taylor has pledged to repeal the changes if the Coalition wins the next election. The Greens are likely to decide the legislation's fate, with leader Larissa Waters labelling the changes 'tinkering around the edges'.
The government has tried to reorient focus towards housing, with Housing Minister Clare O'Neil arguing the budget is about reshaping housing opportunities for Australians. Independent MP Allegra Spender warned of 'very significant unintended consequences' on businesses, while the Australian Chamber of Commerce and Industry called for a total overhaul of the plan.
