National

Labor faces parliament challenge to budget tax reform

May 13, 2026

Budget compsite image — Treasurer Jim Chalmers' budget will need to look to the coalition or the Greens for support. -AAP Image

The future of the government's signature policies in the federal budget remain unclear, with no guarantee of support through the parliament.

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Treasurer Jim Chalmers' fifth budget included plans to limit negative gearing to new builds, as well as an overhaul of the 50 per cent discount on capital gains tax, which will instead be linked to the rate of inflation.

In order for the budget measures to become reality, Labor will need to look to the coalition or the Greens for support.

Opposition Leader Angus Taylor said the coalition would scrap the tax changes should it form government.

"We're going to do everything we can to stop these bad taxes, toxic taxes, from getting through the parliament," he told Sky News on Wednesday.

But the Greens have yet to indicate their support for the measures, despite previously calling for the government to make changes on negative gearing.

"It's a bit of a con, because they've kept 95 per cent of these property investor tax credits, and there is nothing in this budget for renters," Greens leader Larissa Waters told reporters in Canberra.

"We're going to take a look at the details of the legislation once the government puts it forward, and if it's a small step forward, well, that will factor into our decision making."

Savings to the budget through cuts to the NDIS will also require support from the parliament, with a tightening of eligibility for the scheme expected to save $36 billion over the next four years.

The Greens have said they would oppose any of the changes for the scheme.

"(The government) have found it in themselves to punch down on the most vulnerable in our community," Senator Waters said.

"They're going to be cutting 160,000 people off the NDIS because they don't have the guts to raise revenue from the big corporations."

The coalition had signalled support for changes to the NDIS in order to bring down costs to the program, which is expected to become one of the largest spending items in the budget.

The treasurer said he was confident of NDIS measures passing through parliament.

"There are a number of elements of the budgets which are difficult but doable," he told the National Press Club.

"It will take a lot of work, and not just at the Commonwealth level, to make sure that the numbers that we've accounted for in the budget come to fruition, but I'm confident that we can."