Treasury Laws Amendment (Tax Reform No. 1) Bill 2026

Summary

Introduced with the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026, the bill amends the Income Tax Assessment Act 1997 and 3 other taxation laws to replace the 50 per cent capital gains tax discount for individuals, trusts and partnerships with cost base indexation and a 30 per cent minimum tax rate on capital gains accruing on and after 1 July 2027; Income Tax Assessment Act 1997 to limit negative gearing for residential property investments to new builds from 1 July 2027; Income Tax Assessment Act 1997 to provide for a non-refundable tax offset from the 2027-28 financial year for Australian resident individuals who earn labour income; and Income Tax Assessment Act 1997 and Fringe Benefits Tax Assessment Act 1986 to provide for a $1,000 standard deduction from the 2026-27 financial year for work-related expenses for individuals who are Australian tax residents who derive assessable labour income.