Labor prepared to fast-track fix to negative gearing 'widow tax'
Treasurer Jim Chalmers says the government is prepared to fast-track a fix to the unintended "widow tax" created by its changes to negative gearing if it will win the Coalition's support to save $37 billion in NDIS spending.
The Australian government is open to fast-tracking a solution to the unintended "widow tax" issue, which hampers individuals from negatively gearing a home following the death of a partner. This tax loophole, created by recent negative gearing reforms, is a demand from the Coalition for its support of a $37 billion savings plan for the National Disability Insurance Scheme (NDIS).
Treasurer Jim Chalmers stated that the government is willing to expedite a fix if it secures the Coalition's backing for the NDIS savings package, which it aims to pass this week. The Coalition has expressed support for the NDIS savings plan but has yet to agree on the bill, with Opposition Leader Angus Taylor demanding the government address the "cruel" loophole that prevents surviving partners from negatively gearing inherited properties.
Independent Senator David Pocock had previously called for the abolition of the widow tax, arguing that it was already causing difficulties for people seeking financing. The government has drafted legislation to rectify this issue, but it is not expected to be addressed this week. Chalmers is willing to negotiate a rapid resolution to the widow tax in exchange for the Coalition's support on the NDIS savings package.
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