How could the tax overhaul legislation affect the Senate's legislative process?
Tax overhaul could pass the Senate with Greens support The government's tax overhaul, which includes scrapping the 50 per cent capital gains tax discount and tightening negative gearing rules, is expected to pass the Senate. This passage was secured through a deal with the Greens, who agreed to support the legislation in exchange for the government banning new limited recourse borrowing arrangements for residential property by self-managed super funds. The Greens' support is critical for the bill to move forward through the Senate's legislative process.
- Effect
- Mild positive
- How direct
- 2 steps, all reported
- When
- Within weeks
- The story
- Gone quiet
How it reaches senate
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The Australian Government is advancing a major tax overhaul, which includes plans to replace the tax-free status of discretionary trusts with a minimum 30 per cent tax. This change is projected to generate approximately $4.5 billion annually by 2030. As part of the deal with the Greens, the government also agreed to prohibit new limited recourse borrowing arrangements for residential property within self-managed super funds.
The full event9independent outlets -
The Albanese government struck a deal with the Greens to pass its wider investor tax overhaul. This deal included the Greens securing an amendment to prevent wealthy property investors from exploiting a loophole using Self-Managed Super Funds, and the government agreeing to ban new limited recourse borrowing arrangements for residential property by super funds.
2 reports connect these two. Brind only summarizes; follow a link to read the reporting itself.
- dailymail.com Jun 23
- theguardian.com Jun 10
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lawyer and politician in Queensland, Australia (1977- )
Everything about Larissa Waters -
The Greens' confirmation of support for the first tranche of tax reform legislation is expected to clear the way for the wider investor tax overhaul to pass the Senate. The Greens' backing is considered essential for the government to get the bulk of its Budget tax package in place.
2 reports connect these two. Brind only summarizes; follow a link to read the reporting itself.
- dailymail.com Jun 23
- perthnow.com.au Jun 22
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type of legislative body, often the upper house or chamber of a bicameral legislature
Everything about senate
Tap any step to see the evidence behind it.
The facts so far
As reported. Each one links to where it comes from.
- The government agreed to ban new limited recourse borrowing arrangements (LRBAs) for residential property by super funds 45 days after royal assent.theadviser.com.au
- The tax overhaul replaces the 50 per cent CGT discount with a new arrangement consisting of a 30 per cent flat tax and an inflation discount.dailymail.com
- Negative gearing rules will be tightened, limiting concessions to newly built properties and grandfathering all existing arrangements before May 12.dailymail.com
- The bill is expected to pass the Senate before the end of next week.theadviser.com.au
Why it matters
The passage of this tax overhaul represents a significant reshaping of Australia's tax system, moving away from the previous 50 per cent capital gains tax discount. For the Senate, the successful passage of this legislation confirms its role as the final legislative hurdle for major economic policy changes, demonstrating its influence in shaping the national financial landscape.
This deal highlights the increasing necessity of cross-party negotiation for the government to achieve its legislative goals. The Greens' support, secured by specific amendments regarding superannuation funds, underscores how minor parties can leverage their position in the Senate to influence the scope and detail of major government reforms.
What we don't know yet
- Will the second, more technical bill detailing carve-outs and updated rules for discretionary trusts also pass the Senate?
- How will the Senate respond to the Greens' continued opposition to the NDIS cut bill?
Is this still moving?
- Reports
- 9
- Developments
- 9
- Repetition
- 44%
What would change this answer
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About Smsf
Since the government is banning new limited recourse borrowing arrangements for super funds, how might this change affect the investment strategies of self-managed super funds?
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Who else could feel it
Other possible ripples from the same event.
Reporting
All 9 outlets- dailymail.comJun 23
- theguardian.comJun 10
- perthnow.com.auJun 22
- theland.com.auSep 1
- crikey.com.auJul 2
- theadviser.com.auJun 23
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.