{"id":"BILL-r7493","name":"Treasury Laws Amendment (Tax Reform No. 1) Bill 2026","slug":"treasury-laws-amendment-tax-reform-no-1-bill-2026","collection":"bill","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":462402,"registerId":"commonwealth-BILL-r7493-current","compilationNumber":null,"startDate":"2026-05-28","status":"before_reps","reasons":null,"registeredAt":null},"sections":[],"analysis":{"summary":{"status_summary":"Introduced and read a first time in the House of Representatives on 28 May 2026; second reading moved; referred to the Senate Economics Legislation Committee on 28 May 2026 with a report due by 22 June 2026.","complexity_score":10,"likely_questions":["If I bought an investment property before 12 May 2026, will the negative gearing changes affect me?","How do I calculate my capital gain if I sell an asset I already owned on 1 July 2027? Can I choose the apportionment method?","What is the minimum tax on capital gains and does it apply to shares held for less than 12 months?","Will I still be able to claim actual work-related expenses if they are more than $1,000?","For the Working Australians Tax Offset, do I need to do anything to claim it or is it automatic?","What happens to my carried-forward net capital losses under the new categorisation of gains?","Are managed investment trusts affected by the negative gearing restrictions?","When does the standard deduction start and do I need to substantiate to claim it?"],"complexity_factors":["Introduces four separate new regimes (CGT indexation, minimum tax, negative gearing quarantine, standard deduction) with different commencement dates and transitional rules","Creates four new categories of capital gains (deferred residential, deferred non-residential, residential, non-residential) with a complex seven-step net capital gain calculation","Requires deemed sale and reacquisition of all pre-1 July 2027 CGT assets (including pre-CGT assets) with a choice of market value or ministerial apportionment method","Interlocks CGT changes with negative gearing changes via quarantined amounts applied to capital gains in a specific order","Imposes new trustee reporting obligations with administrative penalties for non-compliance","Includes multiple ministerial powers to define key terms (new residential dwelling, exempt payments, affordable housing classes) by legislative instrument","Revises trust streaming laws and adds a new Subdivision 115-CA for trusts without net capital gains due to indexation"],"plain_english_summary":"This Bill makes four major changes to Australia's tax system, applying from the 2026-27 and 2027-28 income years. First, it overhauls capital gains tax (CGT) for Australian resident individuals, trusts and partnerships. From 1 July 2027, the current 50 per cent CGT discount for assets held more than 12 months is replaced with cost base indexation, meaning only real (inflation-adjusted) gains are taxed. A new 30 per cent minimum tax applies to those capital gains to reduce the benefit of timing sales for low-income years; income support recipients are exempt. Pre-CGT assets (acquired before 20 September 1985) will be brought into the CGT system for gains accruing after 1 July 2027. A 50 per cent discount remains available for new residential dwellings and up to 60 per cent for affordable housing, at the taxpayer's choice instead of indexation. Small business CGT concessions are unchanged. Transitional rules apportion gains on assets held before 1 July 2027 between old and new rules, using a deemed sale and reacquisition on that date.\n\nSecond, negative gearing for residential property is restricted to new builds from 1 July 2027. Rental losses on existing dwellings acquired after 7.30pm AEST on 12 May 2026 cannot be deducted against salary or other income; they are quarantined and can only offset future residential income or capital gains from residential dwellings. Losses on new residential dwellings (as defined by the Minister) and properties acquired before that date remain fully deductible against all income. Widely held trusts, complying superannuation funds, and dwellings used for fringe benefits are excluded from the restriction. Any leftover quarantined losses are carried forward but extinguished on bankruptcy.\n\nThird, a non-refundable Working Australians Tax Offset of up to $250 per year is introduced from 2027-28 for Australian residents whose net labour income exceeds the tax-free threshold. The exact formula will be set by the Minister. This offset is designed to provide modest relief to workers.\n\nFourth, from 2026-27, individual Australian residents can claim a standard deduction of up to $1,000 for work-related expenses without substantiation. The deduction is reduced dollar-for-dollar by any actual work-related expenses claimed (such as car, travel, tools, repairs, COVID-19 tests). Deductions for income protection insurance and union fees can still be claimed in addition. The standard deduction replaces certain existing small-expense substantiation exceptions. Consequential amendments to fringe benefits tax ensure salary-packaged work expenses do not give a double benefit.\n\nCombined, the CGT and negative gearing changes are estimated to improve the cash balance by $3.6 billion over four years, while the Working Australians Tax Offset costs $6.4 billion and the standard deduction costs $2.6 billion over four years. Compliance costs are expected to increase by $88.4 million annually for the CGT and negative gearing measures, but the standard deduction should save $380 million annually in compliance costs. The Bill is currently before the House of Representatives, referred to the Senate Economics Legislation Committee with a report due 22 June 2026."}},"importantCases":[],"_links":{"self":"/api/acts/treasury-laws-amendment-tax-reform-no-1-bill-2026","history":"/api/acts/treasury-laws-amendment-tax-reform-no-1-bill-2026/history","analysis":"/api/acts/treasury-laws-amendment-tax-reform-no-1-bill-2026/analysis","conflicts":"/api/acts/treasury-laws-amendment-tax-reform-no-1-bill-2026/conflicts","importantCases":"/api/acts/treasury-laws-amendment-tax-reform-no-1-bill-2026/important-cases","documents":"/api/acts/treasury-laws-amendment-tax-reform-no-1-bill-2026/documents"}}