Contentious tax reforms are set to become law after a deal was struck between Labor and the Greens. The new deal will see the government close a super fund loophole and extend an inquiry into cuts to the NDIS.The minor party struck a deal with the government on Tuesday to pass curbs to negative gearing and the capital gains tax (CGT) discount within the next two weeks.The Greens also secured a handful of amendments to the tax changes.The Coalition strongly opposes the tax changes, saying they will hurt young home buyers and small businesses, leaving the Greens as the only path for Labor to get the bill through the Senate.News that makes senseYour trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.What are the changes the government has agreed to?Under the agreement, the government will close a loophole that allows people to buy property through self-managed super funds (SMSFs) to avoid the CGT increase.SMSFs will be banned from using limited recourse borrowing arrangements, which allow trustees to borrow against a property while protecting the rest of the fund's investments from lenders if the property defaults.The Greens have argued that closing the loophole prevents investors from flocking to SMSFs to buy tax-advantaged properties."Multiple inquiries have raised concerns that these arrangements raise risks for superannuation investors ... and limiting new arrangements going forward will help protect people's savings," Prime Minister Anthony Albanese, Treasurer Jim Chalmers and Finance Minister Katy Gallagher said in a joint statement.In exchange for the Greens' support of the tax changes, the government also agreed to extend the NDIS inquiry by eight weeks.Labor has made a number of amendments to the NDIS bill, curbing ministerial powers and improving transparency.But the Greens say even with those changes, they will still oppose the bill.A snap parliamentary inquiry's final report on changes to the $56 million NDIS scheme was due to be tabled on Tuesday after two extensions were granted.However, an interim version is expected to be tabled instead, with the committee now set to deliver a final report by 14 August.The proposed NDIS overhaul would boot 160,000 people from the scheme to rein in spending and leave thousands more with less funding.Delaying the report would grant more time to build pressure on both Labor and the Liberals to withdraw support for the bill entirely, the Greens said.What are the CGT changes in the bill?In its May budget, the government announced capital gains tax rules would change from 1 July 2027, with the standard 50 per cent discount for individuals, trusts, and partnerships to be replaced with cost base indexation and a 30 per cent minimum tax rate.The changes will be extended to all assets, including businesses, although the government has announced a carve-out for innovative firms to placate the startup sector, which has complained it would be uniquely impacted by the new arrangements.On 18 June, Albanese said the 50 per cent active asset discount — which is applied on top of the standard CGT discount for small businesses with an annual turnover of up to $2 million — would be expanded to cover businesses with a turnover of up to $10 million.He also said the government will introduce new tax concessions for start-ups, following concerns that measures rolled out in the budget would harm entrepreneurship.Around 2.7 million small businesses will have access to tax concessions, Chalmers said.What are the negative gearing changes?The bill also includes abolishing negative gearing for established properties, a $250 per year tax offset for workers and a standard $1,000 deduction for work expenses.As part of the Greens' deal, the treasurer will also have his powers to extend the 50 per cent discount to more assets reined in.Greens leader Larissa Waters said the package was a step in the right direction, but the government missed an opportunity to actually fix the housing crisis by grandfathering arrangements for existing investors."It could have been so much better, but it is a small step in the right direction," she told reporters in Canberra on Tuesday.For the latest from SBS News, download our app and subscribe to our newsletter.