The plan keeps unrealised gains untaxed while aiming to raise about $2 billion a year by 2028-29.

Commonwealth Bank economists say changes to CGT or negative gearing would modestly slow price growth in major cities, with rents rising only marginally.

Labor’s package evolved after initial resistance, with October changes removing unrealised gains, indexing thresholds to inflation, and expanding the low-income superannuation tax offset.

Labor is weighing additional reforms for the May budget, such as winding back the 50% CGT discount and possibly capping negative gearing on multiple properties to address housing inequality.

Greens back Labor’s plan to raise taxes on the largest super balances, enabling the package to pass in the Senate and ending a three-year dispute over wealthier retirees’ concessions.

Greens endorse the three-year plan to lift taxes on very large super accounts, signaling support for a broader package of May budget reforms.

The discussion includes reactions from critics, current housing market dynamics, and economic roundtable inputs guiding potential reforms ahead of the May budget.

The Greens’ economics spokesman frames the May budget as a once-in-a-generation chance for ambitious reform, describing their support as a down-payment on genuine, progressive tax reform.

Treasurer Jim Chalmers revised proposals after criticism, with consideration of further measures including CGT discount, negative gearing, trusts taxation, EV subsidies, and personal income tax cuts.

McKim says the decision also clears the way for Labor to pursue broader reforms, including potential changes to the capital gains tax discount and negative gearing in the upcoming budget.

Under the proposed changes, the concessional tax rate on super balances from $3 million to $10 million would rise from 15% to 30%, with balances above $10 million facing a 40% rate starting July 1.

McKim argues the tax system worsens housing affordability, wealth inequality, and intergenerational inequity, urging reform to ease burdens on younger and working Australians while addressing ultra-wealthy concessions.