Australia: Consultation on draft legislation introducing 2026-27 budget tax reform measures, including R&D tax incentive simplification

Treasury released for consultation exposure draft legislation introducing a number of tax reform measures announced in its 2026-27 budget, including:

• Treasury Laws Amendment (Tax Reform No. 5) Bill 2026: Innovative business CGT concession, which would provide early investors in eligible innovative start-up companies with access to a 50% capital gains tax (CGT) discount
• Treasury Laws Amendment (Tax Reform No. 5) Bill 2026: Better targeting the Research and Development (R&D) Tax Incentive, which would simplify and refine the R&D tax incentive by:
  • Removing eligibility of supporting R&D activities
  • Increasing minimum and maximum expenditure thresholds, offset rates for R&D activities, and turnover threshold for the refundable offset
  • Restricting access to the refundable offset for entities in the period of first 10 years of carrying on an enterprise or from the point of first registration for the R&D tax incentive, and the first 15 years for entities conducting R&D activities related to therapeutic goods
• Treasury Laws Amendment (Tax Reform No. 5) Bill 2026: Venture capital tax incentives, which would expand the venture capital tax settings to ensure that the scope of entities that can receive funding via venture capital limited partnership or early stage venture capital limited partnership investment reflects the contemporary Australian start-up environment

The consultation closes September 28, 2026.