Australia: Legislation to amend foreign resident capital gains tax and merger control regimes introduced to Parliament
Including transitional 50% capital gains tax discount for certain foreign investors disposing of Australian renewable energy assets
The government introduced to Parliament the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026, which would:
- Clarify and broaden the foreign resident capital gains tax (CGT) base by incorporating a definition of “real property” in the Income Tax Assessment Act 1997
- Provide a transitional 50% CGT discount for certain foreign investors disposing of Australian renewable energy assets
- Enable taxpayers to claim the tax credit from amounts withheld under the foreign resident capital gains withholding legislation, enshrining the settings provided for in the Taxation Administration (Remedial Power-Foreign Resident Capital Gains Withholding) Determination 2017
- Amend the acquisitions provisions in the Competition and Consumer Act 2010 (CCA 2010) to refine the operation of the new mandatory and suspensory merger control regime
- Amend the CCA 2010 and Productivity Commission Act 1998 to substitute references to the 1995 National Competition Policy (NCP) Agreements with references to the 2024 NCP Agreement, as in force from time to time