Labor MPs have burst into applause after the Albanese Government's proposed changes to capital gains tax discounts and negative gearing have cleared the Senate.

Under the reforms, the 50 per cent CGT discount will be abolished, while negative gearing will be restricted to newly built properties.

Existing arrangements will be grandfathered, meaning current investors will not be affected by the changes.

The bill is set to be voted on in the House of Representatives later tonight, where it will easily pass.

The government moved to curtail parliamentary debate on the bill, invoking a so-called 'guillotine' to fast‑track its passage.

Prime Minister Anthony Albanese confirmed on Tuesday that he had reached a deal with Greens leader Larissa Waters to secure the passage of the reforms.

Under the deal with the Greens, the Federal government will close a loophole where people can buy property through self managed super funds and access a capital gains tax rate of just 10 per cent.

'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 government said in a statement.

More to come.