Treasury Laws Amendment (Tax Reform No. 3) Bill 2026

Summary

Introduced with the Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026, the bill amends the: Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to establish a minimum tax rate of 30 per cent on the net income of discretionary trusts from 1 July 2028; Income Tax (Transitional Provisions) Act 1997 to provide roll-over relief for taxpayers restructuring from discretionary trusts to other entity types; Income Tax Assessment Act 1936 to establish an elective regime for certain discretionary trusts; Income Tax Assessment Act 1936, Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to clarify and adjust the operation of capital gains tax adjustment provisions, including their application to trusts and managed investment vehicles; and Income Tax Assessment Act 1997 and Income Tax (Transitional Provisions) Act 1997 to: amend negative gearing provisions in relation to new residential dwellings and dwellings that support affordable housing; and provide transitional relief for excess concessional superannuation contributions arising from the commencement of Payday Superannuation.