The Australian government is considering delaying key reforms to the National Disability Insurance Scheme (NDIS) as part of negotiations with the Greens to secure support for a proposed overhaul of negative gearing and capital gains tax laws. The discussions come ahead of a parliamentary sitting fortnight expected to focus heavily on the most significant tax changes in decades.

The committee responsible for reviewing the landmark NDIS reforms has already postponed its reporting date twice, with the latest extension moving the deadline to June 23. Labor is contemplating pushing this timeframe further to accommodate negotiations with the Greens, despite the pressing need for reforms aimed at halving the scheme’s growth within 12 months.

Treasurer Jim Chalmers defended the delay, stating that giving the committee sufficient time to complete its work is appropriate. He indicated that the government is seeking to secure the Greens’ backing to “lock in certainty” about the reform bill’s direction and the inquiry process.

The fiscal measures under consideration are intended to raise revenue by altering tax benefits related to property investments, including negative gearing and capital gains tax concessions. However, some economists and fund managers have expressed concerns over the potential market impact, suggesting that the proposed changes could disproportionately benefit the 20 largest companies listed on the Australian Securities Exchange (ASX) while prompting some investors to divest from high-yield stocks as soon as next week.

Critics argue that this shift may exert additional downward pressure on the broader market, complicating an already sensitive economic environment. Supporters contend that the reforms are essential to creating a fairer tax system and funding critical services like the NDIS.

As talks continue, the government appears willing to prioritize securing Greens’ parliamentary support, even if it means delaying the implementation of urgent NDIS reforms to facilitate agreement on the tax legislation. The outcome of these negotiations will be closely watched, given the potential implications for both the disability support system and the Australian economy.