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Anthony Albanese has revealed there will be investment changes to self-managed super funds as he strikes a deal with the Greens to pass his flagship tax reforms.
The Prime Minister confirmed the agreement on Tuesday.
The reforms include a major overhaul of capital gains tax, with the existing 50 per cent discount scrapped and replaced by a flat 30 per cent rate, indexed to inflation.
Negative gearing rules will also be tightened, limiting tax concessions to newly built properties, while all existing arrangements before May 12 will be grandfathered.
Under the agreement, the government will close a loophole where people can buy property through self-managed super funds to avoid the CGT increase.
'These changes don’t in any way change the tax arrangements for superannuation, don’t impact any existing SMSF borrowing arrangements and provide time to finalise arrangements that are in train,' the Albanese government said in a statement.
'Labor built superannuation and we’ll always look to make it stronger and fairer, and agreeing to these changes will reduce the risks to retirement savings while also securing passage of these important reforms to make the tax system fairer.'
In exchange for the Greens' support of the tax changes, the government has agreed to extend the NDIS inquiry by eight weeks.
Anthony Albanese (pictured) confirmed a deal with the Greens had been struck on the budget
Larissa Waters (pictured) and the Greens have slammed proposed changes to the NDIS
Labor has also made a number of amendments to the NDIS bill, curbing ministerial powers and improving transparency.
But the Greens say even with those changes, they will still oppose the bill.
A snap parliamentary inquiry's final report on changes to the $56million NDIS scheme was due to be tabled on Tuesday after two extensions were granted.
However, an interim version is expected to be tabled instead, with the committee now set to deliver a final report by August 14.
The proposed NDIS overhaul would boot 160,000 people from the scheme to rein in spending and leave thousands more with less funding.
Delaying the report will grant more time to build pressure on both Labor and the Liberals to withdraw support for the bill entirely, the Greens said.
More to come...
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