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Labor–Greens Tax Deal: What Changed for the NDIS

Read the verified June Labor–Greens tax agreement, its eight-week NDIS inquiry extension and agreed safeguards, plus the later August legislative outcome.

News5 min read
Editorial illustration of tax and NDIS reform documents beside Parliament House and a participant.

Correction and update — 17 September 2026: We have repaired the ABC and Guardian references and retained the verified tax-deal connection. The actual agreement and Josh Butler’s political analysis are now distinguished, with precise attribution for the different savings measures. The article also records the later August passage instead of leaving a June prediction as current fact.

TL;DR

  • Labor secured Greens support for capital gains tax and negative gearing changes on 23 June 2026 [1].
  • The agreement included an eight-week extension of the NDIS inquiry and amendments on safeguards [1][2].
  • Greens support for the tax package did not mean support for the NDIS changes as a whole [1].
  • The NDIS Bill later passed Parliament on 19 August and received Royal Assent on 20 August [4].

What the agreement actually included

ABC's Clare Armstrong reported that Labor and the Greens agreed to end an exemption allowing self-managed superannuation funds to borrow to buy residential property. The agreement also extended the NDIS inquiry's reporting date to 14 August [1].

ABC reported agreed NDIS amendments to limit ministerial powers over support-budget cuts, improve transparency around automated decisions and provide protections against harmful restrictive practices being required for access [1]. ABC's separate report on the inquiry confirms the link between the extension and Greens support for tax reform [2].

These are reported terms of the agreement. They provide a stronger basis for understanding the trade-off than a general claim that the government simply ran out of political capital.

What the delay meant at the time

ABC reported that Labor had hoped to pass both packages before the winter break, while the NDIS Bill would now not reach the Senate until at least mid-August. The June article described proposed NDIS savings of $37.8 billion over four years and quoted Health Minister Mark Butler saying the delay would cost the budget a few hundred million dollars, with detail to come in the mid-year review [1].

Those are contemporaneous reported estimates, not a newly verified final budget cost or an amount removed from one participant's plan. The Guardian’s 12 May budget report separately described $36.2 billion recouped over four years and $37.8 billion in reduced participant payments until 2030. It identified the NDIS package as the budget’s largest single savings measure [7]. These figures refer to different budget measures and should not be treated as interchangeable.

Greens support had limits

The same ABC article reported that Greens disability spokesman Jordon Steele-John would continue opposing the broader NDIS changes despite the amendments. Support for the tax legislation and an inquiry extension should therefore not be described as Greens endorsement of the NDIS overhaul [1].

Separately, Grattan's Sam Bennett had warned in April of the difficulty of implementing reforms quickly without blunt reductions worsening participant outcomes [3]. That analysis describes implementation risk; it does not prove the terms or motives of the June negotiation.

How the political risk was assessed

Guardian political correspondent Josh Butler argued on 24 June that the tax victory could complicate passage of the NDIS changes. He pointed to the extra public hearings, continued Greens opposition and the importance of Coalition support [6]. This is attributed contemporaneous analysis, not a proven outcome or a claim that the tax agreement itself cancelled NDIS reform.

The later outcome

The department records that the NDIS Bill passed Parliament on 19 August and received Royal Assent on 20 August 2026 [4]. Reporting the June negotiation as though passage remained unresolved would now be outdated.

Implementation is staged. Use the department's current timeline for the start date of a particular change, rather than assuming that every provision took effect when Parliament passed the Bill [5].

FAQ

Q: Was the tax deal actually connected to the NDIS inquiry? Yes. ABC's June reporting says the agreement included an eight-week inquiry extension and NDIS amendments [1][2].

Q: Did the Greens support the entire NDIS package? No. ABC reported continued Greens opposition to the broader changes despite the agreement [1].

Q: Has the NDIS legislation since passed? Yes. Passage was on 19 August and Royal Assent on 20 August 2026 [4].

References

[1] Clare Armstrong, ABC News, 23 June 2026. Greens back CGT, negative gearing changes in return for extended NDIS inquiry, end to super loophole.

[2] Evan Young and Nas Campanella, ABC News, 23 June 2026. Disability advocates welcome extension after ridiculous and disrespectful NDIS inquiry.

[3] Sam Bennett, Grattan Institute, 22 April 2026. The NDIS reform package is a step forward.

[4] Department of Health, Disability and Ageing, updated 4 September 2026. NDIS legislation: passage and Royal Assent.

[5] Department of Health, Disability and Ageing, updated 15 September 2026. NDIS reform implementation timeline.

[6] Josh Butler, The Guardian, 24 June 2026. Labor’s tax deal with the Greens is a crucial win – but its NDIS changes could pay the price.

[7] Sarah Basford Canales, The Guardian, 12 May 2026. Huge cuts to national disability insurance scheme aim to save more than $36bn in budget’s largest single measure.