Australian news and politics live: Labor secure support from Greens on tax changes after deal struck

Treasurer Jim Chalmers said that the concession given on SMSFs in exchange for support for tax reform from the Greens only impacts a “very small” part of the housing market.

“Many of you would know that super funds are generally prohibited from borrowing to make investments. But this has been an exception in the system,” Dr Chalmers said on Tuesday.

“We will be dealing with that with this amendment in the Senate.

“This is a very small part of the housing market.

“SMSFs, for example, account for less than 1 per cent of total residential property borrowing and less than half a per cent of new residential borrowing each year.”

Treasurer Jim Chalmers says today is the start of a fairer Australia for many Aussies, celebrating gaining the support in the Senate for Labor’s “ambitious” Budget.

“This is a really important day for tax reform in the country,” Dr Chalmers said.

“Economic reform is never easy, especially tax reform, but it is worth it.

“The passage of these bills will mean a fair go for first home buyers, tax cuts for workers, and a fairer tax system as well.

Every time there’s major tax reform in the country, it requires multiple pieces of legislation and consultation. That is what we are seeing here.

“What this will mean is that the major elements of our ambitious tax reforms will be in place once this passes both houses of the Parliament.”

Prime Minister Anthony Albanese has celebrated the support of Labor securing the Greens support to push through his government’s controversial tax changes.

“My government is defined by what we are in favour of,” Mr Albanese said in Canberra.

“Delivering real change in the national interest. Making difficult decisions so that Australia can move forward.

“We will continue to be defined by that.

“These reforms are important in the interest of the Australian people.”

Mr Albanese said he expected the Liberal Party, the Nationals and One Nation to continue opposing the changes, accusing them of being in a race to the bottom to prove they are anti-aspiration.

Larissa Waters said the Greens have an agreement that the NDIS cuts will not pass until at least August, however, she vowed to keep fighting to ensure the bill never passes.

“We will push in every possible way for this bill to never pass,” the Greens Leader said on Tuesday.

She said the cuts are “cruel”, and if the Government and the Liberal Party push the changes through, lives will be at risk, and that will be on them.

Greens Leader Larissa Waters says her party will support Labor’s tax changes, despite them not going far enough in their eyes.

“The Greens have been working for decades to try and get rid of the unfair property investor tax perks that were bought in some 25 years ago that has made housing so unaffordable, and has priced so many people, and in fact generations out of owning their own home, that is meant to be part of the Australian dream,” she said in Parliament.

“The Greens were very disappointed at the lack of ambition in what the Government posted on Budget night. They could of actually gotten rid of those unfair tax perks for the very wealthy.

“Instead, they left $33 billion on the table, in the pockets of wealthy property investors who’ve got three or more investment properties.

“On balance, this package is a small step in the right direction... and the Greens will vote to see it pass the Parliament this fortnight.”

Prime Minister Anthony Albanese has confirmed controversial tax changes are coming, now with the support of the Greens.

“Today the Greens have confirmed they will support passage of the first tranche of tax reform legislation. It is now a question for the rest of the parliament whether they will get on board with tax cuts for workers and a fairer tax system for first home buyers,” Mr Albanese said in a statement.

“The government will make a number of additional amendments, in line with our announcement on 18 June, to provide as much certainty on the implementation details as possible. The government will also support amendments to the NDIS legislation to clarify the implementation of the reforms.

“In addition, the Government has agreed to support an amendment that will be moved by the Greens to ban future limited recourse borrowing arrangements (LRBAs) for residential property by superannuation funds.”

The Greens have agreed to pass changes to the capital gains tax discount and negative gearing in exchange for Labor limiting self-managed superannuation funds from buying property.

The minor party’s support means the Government can get the bulk of its Budget tax package in place this fortnight.

Ministers hope a swift process will dampen the fiery opposition that Anthony Albanese labelled “self-interest” over the weekend and Treasurer Jim Chalmers has slammed as a campaign of lies.

The package replaces the 50 per cent capital gains tax discount with one based on inflation, and imposes a minimum 30 per cent rate on the taxable portion.

It also limits negative gearing for properties bought since May 12 to new builds only, and sets up a $250 working Australians tax offset and $1000 standard deduction.

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Anthony Albanese has wished outgoing UK leader Keir Starmer well after his resignation, saying it “must be a very tough day” but he should be “proud of the contribution he has made to the country”.

The Australian Prime Minister listed AUKUS, support for Ukraine, and a social media ban as “opportunities” he was “grateful” to collaborate on.

“I consider Keir Starmer a friend and I’m thinking of him on what must be a very tough day,” he said.

“Serving in public life is a tremendous privilege, but politics can also be a harsh business.

“I’m grateful for the opportunities we had to work together to strengthen our AUKUS defence and security partnership, support the brave people of Ukraine and keep children safe from the damage that social media can do.”

His exit from Downing Street will mean post-Brexit Britain will have its seventh prime minister in the ten years since the country voted to leave the European Union.

After leadership rival Andy Burnham’s strong win at the Makerfield by-election, Sir Starmer’s departure from the helm of the UK Labour Party was widely anticipated as inevitable.

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One Nation Leader Pauline Hanson has revealed she has not spoken to Opposition Leader Angus Taylor for years, despite there being a likelihood the parties may need to work together to form a government.

“I haven’t spoken to Angus for years,” she told Sunrise on Tuesday.

“I haven’t seen him since about 2019, 2020.”

However, she indicated she hoped the two parties could eventually work together, saying she wanted to remove what she described as a “toxic Labor Greens, Teals government”.

“In time, I’m sure we’ll get to talk and strategise about preferences,” Senator Hanson said.

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Richard Marles has stopped far short of confirming that Labor will need the Greens to form Government in the future, instead saying Labor is the captain of the ship.

Following a fresh Roy Morgan poll putting One Nation ahead of Labor, (and miles ahead of the Coalition), Richard Marles refused to accept that the Greens have a major influence over the Government.

“We are governing Australia,” he told Sunrise, after being pushed on the Greens having Labor over a barrel on NDIS funding and tax reform.

“What we are doing is putting forward a Budget. We will work with the Senate to see (it) passed.

“The Greens are completely separate from the Government. We are governing Australia in the national interest.”