retrieval-0020Document excerpt 20

Schedule 2 to the Bill supports this right by requiring that losses on residential dwellings used or held as residential accommodation acquired on or after 7.30pm, (AEST) on 12 May 2026 are quarantined to only be available to reduce assessable income earned from such investment properties, other net assessable income from non-quarantined investment properties or revenue or capital gains from residential dwellings. This has the effect of curtailing the ability to negatively gear investments in residential housing. This is intended to reduce the incentives for taxpayers to select residential property as an investment vehicle vis-à-vis other asset classes, such as shares, and lead to an increase in residential property ownership among owner-occupiers. Increasing residential property ownership rates for owner-occupiers is expected to lead to an increase in residential property ownership among first homebuyers.

Schedule 2 to the Bill exempts new residential dwellings from the requirement to quarantine losses. New residential dwellings are residential dwellings that meet requirements determined by the Minister via legislative instrument. Whether the dwelling genuinely adds to housing supply is a requirement that the Minister can prescribe. This approach is intended to continue to incentivise investment in new houses and in affordable housing, to add to housing supply compared to existing residential property. Increasing housing supply is intended to support higher rates of residential property ownership among owner-occupiers and to increase the supply of rental accommodation and affordable housing.

Schedule 2 to the Bill therefore promotes the right to an adequate standard of living, including food, water, and housing.

Conclusion

Schedule 2 to the Bill is compatible with human rights as it supports the right to an adequate standard of living.

Schedule 2 to the Bill does not raise any other human rights issues.

Schedule 3 - Working Australians tax offset

Overview

Schedule 3 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Schedule 3 to this Bill amends the ITAA 1997 to introduce a new non-refundable tax offset, the working Australians tax offset, to provide targeted relief to individuals who earn labour income.

Human rights implications

Schedule 3 does not engage any of the applicable rights or freedoms.

Conclusion

Schedule 3 is compatible with human rights as it does not raise any human rights issues.

Schedule 4 - Standard deduction for work-related expenses

Overview

Schedule 4 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.