A controversial tax loophole dubbed the “widow tax” is forcing grieving spouses and abuse survivors into financial hardship by stripping them of negative gearing benefits after inheriting properties. With the government racing to pass a $37 billion NDIS funding package, the Coalition is wielding this issue as leverage, demanding urgent reform. Draft legislation exists—but it’s been sidelined—until now. Treasurer Jim Chalmers has signaled he’s open to fast-tracking the fix in exchange for Coalition backing, setting up a high-stakes political trade-off that could reshape property tax rules for thousands.
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