The Australian Labor government is seeking support from the Greens for the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026.
This legislative push is critical because the government must secure cross-bench support in the Senate to implement sweeping changes to the national tax structure. The bill targets two of Australia's most debated fiscal policies: capital gains tax, and negative gearing [3].
The lower house passed the bill on Thursday, June 4, 2026, with a vote of 94-49 [2]. Labor currently holds a 94-seat majority in the lower house [1]. Despite this dominance in the House of Representatives, the government faces a potential blockade in the Senate.
To secure the necessary votes, the government is using the National Disability Insurance Scheme (NDIS) reform as a bargaining chip. Labor is attempting to link the passage of the tax reforms to an extension of the NDIS inquiry [1]. This strategy is designed to gain support from the Greens and potentially the Coalition while avoiding further scrutiny of the budget bills [1].
Negotiations remain ongoing in Canberra as the government navigates a complex political landscape. The Greens and the Coalition have considered teaming up to slow the passage of the bills [1]. This cooperation between opposing sides of the political spectrum threatens to delay the government's fiscal agenda.
The Treasury Laws Amendment bill represents a significant shift in how property and investment assets are taxed. By altering negative gearing and capital gains tax, the government aims to reform the broader tax system, though these specific measures remain highly controversial among stakeholders [3].
“The lower house passed the bill on Thursday, June 4, 2026, with a vote of 94-49.”
The Labor government's decision to tie tax reform to NDIS inquiry extensions indicates a high-stakes legislative gamble. By leveraging a sensitive social services issue to push through fiscal policy, the government is attempting to bypass a Senate blockade. If the Greens and the Coalition maintain their alignment to delay the bills, the government may be forced to either dilute the tax changes or offer further concessions on disability funding to secure a majority.
