{"id":"BILL-r7457","name":"Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026","slug":"treasury-laws-amendment-delivering-an-efficient-and-trusted-tax-system-bill-2026","collection":"bill","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":445987,"registerId":"commonwealth-BILL-r7457-current","compilationNumber":null,"startDate":"2026-05-05","status":"introduced","reasons":null,"registeredAt":null},"sections":[],"analysis":{"summary":{"status_summary":"Introduced in the House of Representatives on 25 March 2026 with the second reading debate underway and a Senate committee report due by 30 April 2026.","complexity_score":4,"likely_questions":["When can donors start claiming deductions for gifts under two dollars?","What obligations do trustees of closely held trusts have under the new reporting rules?"],"complexity_factors":["Changes across multiple areas of tax law including donations, trusts, superannuation and research incentives","Different commencement dates and retrospective application for some provisions"],"plain_english_summary":"The Bill amends tax and super laws to: remove the $2 minimum for deductible gifts (retroactive to 1 July 2024); require closely held trust returns to include beneficiaries’ TFNs to aid pre-filling (from 1 July 2026); allow Public Trustees to appoint paid replacement trustees/directors for SMSFs; and exclude tobacco- and gambling‑connected R&D from the R&D tax incentive (harm‑minimisation work still eligible) from 1 July 2025. It affects donors, trustees, SMSF members and firms in those sectors and remains before Parliament."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Bill bundles a set of measures that go beyond a single narrow administrative reform. While the title emphasises an 'efficient and trusted tax system', the instrument combines: (a) an administrative modernisation (trust TFN reporting and pre-filling); (b) a technical fix for SMSF governance (Public Trustee appointment and remuneration powers); (c) a substantive change to charitable deduction rules (removal of the $2 threshold, applied retrospectively); and (d) a policy exclusion from the R&D tax incentive for tobacco and gambling activities. The inclusion of the R&D exclusion and the charitable deduction change means the Bill has substantive policy effects (targeting subsidy allocation and donor incentives) in addition to IT system and compliance updates, so the scope is materially broader than a narrowly focused IT/administration-only reform."},"complexity_factors":["4 distinct policy areas grouped in one Bill (charitable giving, trust TFN reporting, SMSF trustee appointments, R&D exclusions)","Multiple cross-references to existing tax law (ITAA 1936 Divisions 6D, Part VA; ITAA 1997 R&D provisions) and to SISA and ASIC Act","Retrospective application for Schedule 1 (from 1 July 2024) and staggered commencement dates across schedules","Conditional and exception-heavy rules in Schedule 2 (present entitlement, prior TFN quoting, exemption where TFN already reported under Division 6D)","Commissioner discretion plus mandatory notification duties in amended TFN rules (202DR-style provisions) creating branching logic","Schedule 4 contains an exclusion with a narrow carve-out ('solely for harm minimisation'), creating interpretive ambiguity","Interplay between new rules and existing withholding/penalty regimes (TFN withholding, trustee beneficiary non-disclosure tax)","Practical implementation requirements (software/pre-filling systems, trustee recordkeeping, privacy/security controls) across schedules","Part 2 of Schedule 3 interacts with corporate trustee rules and superannuation prudential constraints, requiring coordination across regimes","Stakeholder uncertainty flags (industry submissions about scope of gambling-related exclusions) that indicate likely administrative guidance or litigation"],"plain_english_summary":"**What this Bill changes (mechanically)**\n\n- **Schedule 1 — Gifts/deductions:** Removes the old rule that a donation must be at least $2 before a donor can claim a tax deduction for gifts to a deductible gift recipient (DGR). The change applies to gifts made from 1 July 2024. Donors may now claim deductions for smaller amounts; charities are not forced to issue receipts but the ATO accepts alternative evidence (bank records, internet receipts).\n\n- **Schedule 2 — Trust reporting and TFNs:** Requires trustees of closely held trusts to report beneficiaries’ tax file numbers (TFNs) on the trust income tax return (in the Statement of Distribution) whenever a beneficiary is presently entitled to income and has quoted a TFN at any time before the trustee lodges the return. It replaces the existing quarterly TFN-reporting obligation. The Commissioner of Taxation is given clarified notification powers: the Commissioner may advise a trustee of a correct TFN where practicable, or must tell the trustee if no TFN can be found. The rules interact with existing trustee-beneficiary reporting and TFN withholding regimes.\n\n- **Schedule 3 — Technical fixes and SMSF trustee appointments:** Contains minor technical amendments to Treasury and ASIC law. Importantly, it lets a Public Trustee (when acting for an incapacitated or deceased client who has a self-managed superannuation fund — SMSF) approve the appointment of a replacement trustee or a director of the corporate trustee, and authorise that appointee to be paid for their services.\n\n- **Schedule 4 — R&D tax incentive exclusions:** Excludes R&D activities relating to tobacco and gambling from eligibility for the R&D Tax Incentive, except where the activity is carried out solely for the purpose of harm minimisation (for example, work to reduce addiction). This applies for income years starting on or after 1 July 2025.\n\n**Who is affected (at a glance)**\n\n- Individual donors and charities (Schedule 1): donors can claim deductions for very small gifts; charities may see more recorded small donations.\n- Trustees of closely held trusts, beneficiaries and the ATO (Schedule 2): trustees must collect and report TFNs in a new way; beneficiaries who don’t provide TFNs remain subject to TFN withholding rules.\n- Public Trustees, SMSF members and SMSF trustees (Schedule 3): Public Trustees gain a statutory route to appoint and pay replacement trustees/directors where incapacity or death causes a governance gap.\n- Companies and advisers claiming R&D tax offsets (Schedule 4): companies working on tobacco- or gambling-related R&D lose access to the R&D tax offset except for harm‑minimisation projects.\n\n**Why the government says it matters (stated purposes) and how the mechanics test those claims**\n\n- Schedule 1 (encourage small-scale giving): The stated purpose is to encourage micro-donations (e.g. round‑ups at point of sale) and capture more giving in tax data. Mechanically, removing the $2 minimum lowers the formal barrier to claiming a deduction. Trade-offs and implementation notes: the fiscal impact appears small; most existing deductible giving is concentrated among higher-income taxpayers, so benefits may be concentrated. Administrative costs for charities that manually issue receipts could rise if they choose to issue receipts for many very small donations, though the law does not force charities to issue receipts (EM notes alternative substantiation is accepted). The change is retrospective to 1 July 2024.\n\n- Schedule 2 (modernise trust reporting to enable pre-filling): The stated purpose is to allow the ATO to pre-fill beneficiaries’ returns and automate trust processing, increasing compliance and reducing manual processing time (the Bill’s fiscal estimate shows revenue gains from better reporting). Mechanically, trustees must now include TFNs on the trust tax return’s Statement of Distribution when beneficiaries are presently entitled and have quoted TFNs. Trade-offs: this creates ongoing data collection and privacy obligations for trustees (and likely system upgrades for tax agents/software); incorrect TFNs and the Commissioner’s discretionary/must-notify rules could create compliance risk and disputes. It replaces a quarterly reporting regime with an annual/reporting-at-lodgement mechanism and interacts with existing trustee-beneficiary reporting and TFN‑withholding penalties.\n\n- Schedule 3 Part 2 (SMSF continuity): The stated purpose is to resolve deadlocks when an SMSF trustee or director becomes incapacitated or dies. Mechanically, a Public Trustee can approve and authorise payment to a replacement trustee/director. Trade-offs: this provides a practical fix to governance deadlocks and keeps SMSFs operating, but introduces an appointment power in place of member-driven appointment processes. Costs (remuneration) are borne by the fund or estate; there is some risk of agency or conflict if appointment or remuneration decisions are not constrained by fund rules or prudential guidance. Fund deeds or constitutions may need review to align with the new power.\n\n- Schedule 4 (policy targeting of R&D subsidy): The stated purpose is to stop subsidising R&D for tobacco and gambling, while preserving support for harm‑reduction research. Mechanically, the law carves these activities out of the definition of eligible R&D, with a narrow exception for activities carried out solely for harm minimisation. Trade-offs and practical issues: defining what counts as 'related to' gambling or tobacco — and what is ‘solely for harm minimisation’ — creates room for interpretive disputes, administrative rulings, and potential litigation. Industries with mixed activities (for example, gaming companies doing non-gambling innovation) may see uncertainty or need to reallocate R&D claims. The change shifts a concentrated subsidy away from specific sectors, with modest estimated fiscal savings.\n\n**Who pays, who decides, and likely behaviour changes (plain sentences)**\n\n- Donors pay less friction to claim small donations; charities receive more small-value recorded donations. (Schedule 1)\n- Trustees of closely held trusts must collect, hold and report beneficiary TFNs at lodgement; trustees will invest in systems or advisor help to comply. The ATO decides whether a quoted TFN is correct and whether to notify a trustee of a correct TFN. (Schedule 2)\n- The Public Trustee can decide (for an incapacitated or deceased SMSF member) who will act as trustee or director and whether that person may be remunerated; the SMSF (or estate) meets remuneration costs. (Schedule 3)\n- Companies doing R&D in tobacco or gambling lose access to R&D tax offsets except for work solely aimed at harm reduction; firms will either stop claiming for excluded activities or reclassify and document projects to fit the harm‑minimisation carve‑out. The ATO will have to interpret and apply the exclusion. (Schedule 4)\n\n**Implementation, compliance and risk notes**\n\n- Retrospective effect for Schedule 1 (from 1 July 2024) benefits donors already given since that date but can complicate past-year filings.\n- Schedule 2 shifts reporting burden to trustees and raises privacy/security obligations because TFNs are sensitive personal data.\n- Schedule 3 may require trustees, fund administrators and Public Trustees to update processes and check SMSF trust deeds and constitutions.\n- Schedule 4’s carve-out depends on detailed definitions (what is ‘‘related to gambling/tobacco’’ and what counts as ‘‘solely for harm minimisation’’). That ambiguity risks disputes and requires ATO guidance or rulings to reduce uncertainty.\n\nOverall, the Bill bundles administrative modernisation measures (trust TFN reporting), clarity for SMSF governance, a low-value gift deduction change, and a targeted exclusion from the R&D tax offset. Each major change shifts compliance costs and decision‑rights to different private parties (trustees, charities, companies) while giving the ATO new data and enforcement responsibilities."}},"importantCases":[],"_links":{"self":"/api/acts/treasury-laws-amendment-delivering-an-efficient-and-trusted-tax-system-bill-2026","history":"/api/acts/treasury-laws-amendment-delivering-an-efficient-and-trusted-tax-system-bill-2026/history","analysis":"/api/acts/treasury-laws-amendment-delivering-an-efficient-and-trusted-tax-system-bill-2026/analysis","conflicts":"/api/acts/treasury-laws-amendment-delivering-an-efficient-and-trusted-tax-system-bill-2026/conflicts","importantCases":"/api/acts/treasury-laws-amendment-delivering-an-efficient-and-trusted-tax-system-bill-2026/important-cases","documents":"/api/acts/treasury-laws-amendment-delivering-an-efficient-and-trusted-tax-system-bill-2026/documents"}}