Labor’s reform outlook cools before long winter break

Labor will attempt to push through controversial changes to the tax system before parliament takes a long winter break.

Negotiations are under way between the Greens and the Albanese government on the major overhaul as parliament returns on Monday for the fortnight before the five-week recess.

A Labor-led committee handed down its final report on Friday, recommending legislation proposing changes to negative gearing and the capital gains tax be passed.

On the same day, a separate parliamentary inquiry into the overhaul of the NDIS delayed its report for a second time, pushing the deadline back to Tuesday.

The Greens are withholding support for both plans, arguing the grandfathering of tax concessions is too generous while also insisting on an extension for the NDIS inquiry.

With the coalition opposing the tax changes, Labor needs the minor party’s support to pass the bill.

Greens senator David Shoebridge said substantive discussions were taking place over both pieces of legislation.

“This is a government that wants to take billions and billions away from some of the most marginal people in the country who have the greatest need for assistance,” he told reporters on Sunday.

“We will not be supporting that. The NDIS bill is plain cruel.”

Under the overhaul, 160,000 people would be kicked off the scheme in an attempt to stop the NDIS from growing at an “unsustainable” pace.

More than 30 business groups have banded together to urge parliamentarians to reject Labor’s proposed changes to the capital gains tax.

Critics attacked Labor’s initial proposal of removing the existing 50 per cent capital gains tax discount and replacing it with inflation indexation and a minimum 30 per cent rate.

In the joint letter, the Australian Chamber of Commerce and Industry warns the changes will deter business investment and weaken economic activity.

On Monday, Prime Minister Anthony Albanese will meet virtually with state and territory leaders to discuss fuel security.

The government has announced fuel excise cuts will be extended for another month at a lower discount, meaning fuel will be cheaper by 16 cents per litre.

The current saving of 32 cents per litre, introduced in response to soaring oil prices due to the US-led war on Iran, will end after June.

As support for One Nation surges, the coalition will look to dig into the party’s policy detail to expose its vulnerabilities to voters.

For the first time, Pauline Hanson is being backed in polls as the preferred prime minister.

In her inaugural National Press Club address, Senator Hanson rejected multiculturalism.

But Toowoomba-based Liberal MP Garth Hamilton, who faces a likely strong One Nation challenge for his seat, questioned her “monoculture” vision.

He said the coalition needed to be “cool, calm and confident” in presenting voters with strong policies.

“We can’t dismiss the areas of concern that people are speaking to,” Mr Hamilton said.

“We also can’t shy away from the differences between us and One Nation.”