Bills — Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026; Limitation of Debate

Summarised using AI from the official Hansard transcript of the debate only. It is not a record of the debate and may leave things out. Read the Hansard below to check it.

This bill gives workers a yearly tax offset of up to $250 and a $1,000 instant deduction for work expenses. It also replaces the 50 per cent capital gains tax discount with inflation indexing and a 30 per cent minimum tax, and limits negative gearing on newly bought existing homes to new builds. The debate focused on housing, fairness between wages and investment income, and how the bill was put together.

Arguments made in support

The government said the bill cuts tax for over 13 million workers and puts more money in their pockets.

Government members said limiting negative gearing and changing capital gains tax would help about 75,000 more people buy their first home over ten years.

The Treasurer said indexing gains to inflation treats all investments the same and means some people will pay less tax.

The government said small business tax concessions stay in place and current property owners keep their negative gearing until they sell.

Independent members Zali Steggall and Allegra Spender said they backed the aim of reforming housing tax settings.

Arguments made against, or for changes

Coalition speakers said the government had no election mandate and had ruled out these changes before the election.

The Coalition argued the negative gearing changes would reduce housing supply and raise rents, citing the budget papers and industry modelling.

The Coalition supported the tax cuts but moved to remove the capital gains and negative gearing parts, and called for tax brackets to be indexed to inflation.

Coalition speakers said the bill gave the Treasurer too much power to decide details without Parliament.

Independent members moved amendments to limit the capital gains changes to property, protect active businesses and small businesses, and said the bill was rushed.

31 speeches by 12 members in the House over 5 sitting days.

Hansard: House of Representatives, 28 May 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: House of Representatives, 2 June 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: House of Representatives, 4 June 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: House of Representatives, 25 June 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: House of Representatives, 29 June 2026 ›

The official Hansard (PDF), Parliament of Australia

What was debated: Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026

Summarised using AI from the official Hansard transcript of the debate only. It is not a record of the debate and may leave things out. Read the Hansard below to check it.

This bill sets a 30 per cent minimum tax on capital gains from 1 July 2027. It was debated together with a companion bill that swaps the 50 per cent capital gains discount for inflation indexing, limits negative gearing to new homes, and adds a $250 worker tax offset and a $1,000 standard deduction. Most of the debate was about the capital gains and negative gearing changes, how they affect housing, small business, startups and investors, and whether the bills were being rushed.

Arguments made in support

Government members said taxing only gains above inflation is fairer than the 50 per cent discount, which they said has pushed investment towards existing homes since 1999.

Supporters said limiting negative gearing to new builds steers investment into new housing and will help about 75,000 more people buy a home. Existing investments are grandfathered.

Government members said the $250 offset and $1,000 deduction cut tax for over 13 million workers and make tax time simpler. Coalition members said they supported these two parts.

The government said the minimum tax stops people delaying gains until low-income years. Pension and JobSeeker recipients are exempt, and small business concessions were widened in Senate amendments.

Several independents and the Greens backed the housing tax changes in principle, saying property tax breaks have favoured investors over first home buyers.

Arguments made against, or for changes

Coalition members opposed the capital gains and negative gearing changes. They said these broke an election promise, raise $77 billion in tax and mean 35,000 fewer homes.

Coalition and Nationals speakers said the changes would hurt small businesses, family farms, trusts and self-funded retirees paying 30 per cent on modest gains. They promised repeal.

Independents said extending the changes beyond property would hurt startups and young share investors. Kate Chaney moved to limit them to property; others wanted a longer inquiry.

The Greens said the bill did not go far enough. They argued grandfathering for investors with many properties was too generous and left large tax breaks in place.

Crossbench senators said the process was rushed and gave the Treasurer too much power. David Pocock withdrew amendments on death and divorce after government assurances.

420 speeches by 131 members in the House and Senate over 8 sitting days.

Hansard: House of Representatives, 28 May 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: House of Representatives, 2 June 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: House of Representatives, 3 June 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: House of Representatives, 4 June 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: Senate, 22 June 2026 ›

The official Hansard (PDF), Parliament of Australia

Hansard: Senate, 23 June 2026 ›