‘Avoiding scrutiny’: Coalition and Greens fight to delay Labor’s major budget bills

Labor’s plans to push its major budget bills through parliament by the end of June could be thrown off course as the Coalition, Greens and crossbench negotiate to force longer inquiries that will scrutinise the government’s tax changes and NDIS reforms.

The government passed its budget tax package through the House of Representatives on Thursday. It combines into one bill the $250 income tax offset and $1000 instant deduction for workers, as well as curbs on negative gearing and capital gains tax concessions.

But Labor is facing delays in the upper house as senators discuss teaming up to extend parliamentary probes into the new laws – the Coalition wants a longer tax inquiry, while the Greens want more time to investigate sweeping changes to the National Disability Insurance Scheme.

The Greens have told the government that their red line is they do not want the NDIS bill passed in the next sitting fortnight, ending July 2. Labor could therefore volunteer to extend NDIS hearings and avoid the Greens working with the Coalition on a tax inquiry that promises additional political pain. However, any NDIS delays will also cost the budget’s bottom line.

Both bills are central to Labor’s agenda: changes to negative gearing and capital gains on all asset classes are part of a package that will raise more than $80 billion over a decade and shift the housing market, while the NDIS laws enable the government to remove 240,000 participants and cut spending by $38 billion over four years.

The government wanted to rush these through by the end of June– particularly the NDIS changes, which allow it to start cutting costs immediately – so each bill has been sent to a Senate inquiry with tight two-day hearing schedules that will report back within the month.

But senators are demanding more scrutiny as elements of both packages meet vehement opposition in certain parts of the community.

While changing the CGT discount for housing has proven relatively uncontroversial, the tech sector, start-ups and small businesses are warning of unintended consequences in making those changes for other assets. The changes will replace the 50 per cent capital gains tax discount with an inflation-based model for all assets except new housing.

Ministerial powers baked into the legislation – which would allow the treasurer of the day to tweak tax settings by giving additional asset classes the 50 per cent discount or redefining new housing – have also prompted claims of overreach.

The NDIS changes are similarly raising alarm in the disability community. The Disability Discrimination