Treasurer Signals Quick Action on Negative Gearing 'Widow Tax' to Secure NDIS Deal

Treasurer Jim Chalmers has indicated the government is

Treasurer Jim Chalmers has indicated the government is open to swiftly amending the so-called 'widow tax'—an unintended consequence of its negative gearing overhaul—if doing so helps gain Coalition backing for a $37 billion reduction in NDIS spending.

Speaking on Wednesday, Chalmers confirmed that negotiations with the opposition are ongoing, with the potential fix seen as a bargaining chip in broader fiscal talks. The 'widow tax' refers to a provision that can penalize surviving spouses when they inherit negatively geared properties, forcing them to sell assets or face unexpected tax liabilities.

The treasurer emphasized that the correction would be fast-tracked if it unlocks bipartisan support for the NDIS savings package, which the government argues is essential to rein in ballooning disability scheme costs. He described the proposal as a commonsense adjustment that addresses a clear flaw without undermining the policy's overall intent.

Opposition figures have raised the issue repeatedly in

Opposition figures have raised the issue repeatedly in recent weeks, framing it as an unfair burden on grieving families. A senior shadow minister, who declined to be named, said the Coalition would study any proposed amendment carefully but reiterated that broader concerns about the government's housing policies remain unresolved.

Policy analysts note that the move could ease political pressure on Labor, which has faced criticism over the negative gearing changes since their announcement. The NDIS savings target, meanwhile, has been a rare area of potential agreement, with both parties acknowledging the need for sustainability.

Chalmers stopped short of detailing the exact legislative path, but stressed that the government is willing to act quickly if a deal materializes. He added that any changes would be designed to protect the original reform's objectives while removing the distress caused to widows and widowers.

With parliament set to resume next month, the

With parliament set to resume next month, the coming weeks will be critical in determining whether the two sides can bridge their differences. For now, the offer on the table appears to be a calculated gesture aimed at breaking a fiscal stalemate.