Labor reached a deal with the Greens on Tuesday to pass changes to capital gains tax and negative gearing reforms. The Greens announced their support for the Albanese government's proposed changes. Under the proposed changes, the capital gains tax discount of 50% on profit from sold assets would transition to a cost-based indexation model starting in July 2027. Negative gearing concessions would no longer apply to investment properties purchased after 7:30 p.m. on May 12, 2026. Exceptions to the negative gearing changes include new builds and specific government housing programs available to investors. The government also agreed to remove a loophole that enabled investors with self-managed super funds to continue utilizing tax breaks, and to remove ministerial powers that would have allowed the government to reverse the tax reforms in the future.

Prime Minister Anthony Albanese said, "Most Australians have nothing to sell but their time, nothing to give but their hard work, and that's how they earn their income." He added, "That's how they put food on the table, and we want those people, those hard-working Australians, to have the opportunity to own their own home." Greens Leader Larissa Waters stated, "It could have been so much better, but it is a small step in the right direction, and the Greens will vote to see it pass the parliament this fortnight, but we will not stop fighting for renters, we will not stop fighting for young people, and for all Australians to be able to afford a roof over their heads."

A separate negotiation led to the Greens securing an eight-week extension to a Senate inquiry into proposed National Disability Insurance Scheme (NDIS) changes. The Senate inquiry will now be extended until August 14. The NDIS legislation aims to save $37.8 billion over four years, including tightening eligibility criteria and requiring all participants to undergo independent functional assessments. The Greens also negotiated an amendment restricting the minister's ability to implement blanket reductions to certain categories of participant supports. This amendment, negotiated by Jordon Steele-John, will protect daily living, assisted technology, consumables, and home modifications from funding cuts. Supports for daily health needs, medical appointments, and commuting to work would also be protected. The Greens secured guarantees that individuals would not be required to undergo restrictive treatments, such as forced medication, to meet a new requirement that all treatment options be exhausted before accessing the NDIS. Health Minister Mark Butler said, "It's hard reform, but I'm not going to sugarcoat the fact that big change needs to happen to the NDIS." He added, "We've designed that change very carefully."

The government will need to draft a second piece of legislation to address trusts and a specific capital gains tax concession for start-ups. Following the inquiry's findings in mid-August, the government will require the opposition's support to pass the NDIS legislation. The Coalition previously offered to collaborate with the Greens to extend the NDIS inquiry for six months if they received greater scrutiny of the tax bills.