Australia: Senate committee report on legislation amending capital gains tax; proposed one-month extension of reduced fuel excise
Other tax measures in legislation include negative gearing restrictions and new tax offsets for individuals.
The Senate Economics Legislation Committee released its report on its inquiry into the two bills that seek to amend the capital gains tax (CGT) discount, restrict negative gearing in housing to new builds, and introduce a working Australians tax offset and an AU$1,000 standard deduction for work-related expenses for individuals.
In its report on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and its imposition bill, Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026, the committee states that there is "substantial evidence" that the interaction between the CGT discount and negative gearing provides particularly favorable treatment for investment in existing residential property and that removal of the preferential tax treatment of existing housing will help redirect investment to more productive asset classes.
The committee recommends that the Senate pass the bills.
Legislation to extend reduced fuel excise for another month
In addition, the government introduced the Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026 to Parliament to extend the reduced fuel excise and heavy vehicle road user charge from July 1, 2026 (when it was set to expire), to August 2, 2026.