Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026

Senator GALLAGHER (Australian Capital Territory—Minister for Finance, Minister for the Public Service, Minister for Women, Minister for Government Services and Manager of Government Business in the Senate) (11:58): I don't think it's—I mean, I'm surprised. I think we've been clear. Certainly, I've spoken in interviews about how, across the forward estimates, negative gearing has a larger impact than capital gains tax.

I don't think that's a secret. So, for the $3.6 billion, the interaction between the two of them—the capital gains tax and negative gearing—has a positive impact of $3.6 billion. Of that, the vast majority comes from the reforms to negative gearing, and, as I said, that's being more than offset and returned to taxpayers through the working Australian tax offset, which is $6.4 billion across the forward estimates.