Labor’s overhaul of negative gearing and capital gains tax is set to clear the Senate after the government struck a deal with the Greens a compromise that will ban self‑managed super funds (SMSFs) from borrowing to buy residential property.
As part of the agreement, the Greens also secured an eight‑week extension to the inquiry into the government’s proposed reforms to the National Disability Insurance Scheme (NDIS), pushing the reporting date to August 14.
Prime Minister Anthony Albanese confirmed Labor would support amendments preventing SMSFs from being used as leveraged investment vehicles in the housing market. “Today, we’ve secured support to get this legislation through the parliament,” he said. “Most Australians have nothing to sell but their time, nothing to give but their hard work. We want those people… to have the opportunity to own their own home.”
The Greens said the SMSF borrowing ban would be prospective, meaning existing contracts and those signed within 45 days of the amendments becoming law will be protected. While superannuation funds are generally barred from borrowing, SMSFs were granted a 2011 exemption allowing them to borrow for single‑asset purchases, including property.
Despite backing the bill, Greens leader Larissa Waters argued the reforms still fall short of what is needed to help Australians locked out of home ownership. “Ending rather than grandfathering these tax breaks today would have helped renters get into a home of their own,” she said.
The deal marks a significant step toward passing one of Labor’s most contentious tax packages and underscores the political pressure to address housing affordability while navigating competing demands from crossbench partners.
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