Labor faces parliament challenge to budget tax reform
The future of the government’s signature policies in the federal budget remains uncertain and there is no guarantee of support through parliament.
Chancellor of the Exchequer Jim Chalmers’ fifth budget included plans to limit the negative charge to new construction, as well as an overhaul of the 50 per cent reduction in capital gains tax, which will instead be linked to the rate of inflation.
For the budget measures to become a reality, Labor will need to look to the coalition or the Greens for support.
Opposition Leader Angus Taylor said he would cancel the tax changes if the coalition formed a government.
“We will do everything we can to stop these bad taxes, poisonous taxes, from getting through parliament,” he told Sky News on Wednesday.
However, the Greens have not yet expressed their support for the measures, although they have previously called on the government to make negative changes.
“It’s a bit of a cheat because they’ve kept 95 per cent of these property investor tax credits and there’s nothing in this budget for renters,” Greens leader Larissa Waters told reporters in Canberra.
“We will take a look at the details of the legislation when the government brings this forward and if there is a small step forward, that will influence our decision-making process.”
Savings in the budget through cuts to the NDIS will also require parliamentary support, with $36 billion in savings expected over the next four years by tightening eligibility for the scheme.
The Greens have said they will oppose any changes to the plan.
“(The government) found it within itself to attack the most vulnerable in our society,” Senator Waters said.
“They will disconnect 160,000 people from the NDIS because they don’t have the guts to get income from big companies.”
The coalition had signaled support for changes to be made to the NDIS in order to reduce the costs of the programme, which is expected to be one of the largest spending items in the budget.
The treasurer said he was confident the NDIS measures would pass parliament.
“There are some elements of the budgets that are difficult but achievable,” he told the National Press Club.
“It’s going to take a lot of work, not just at the Commonwealth level, to make sure the figures we’ve factored into the budget come to fruition, but I’m confident we can achieve that.”
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