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) (12:41): I understand that some there have been some accountants who say they use this in a particular set of circumstances. I mean, I haven't actually seen the gender breakdown of limited recourse borrowing, but, as I understand it, buyers of about 4,000 properties per year, a very small percentage of the residential market, utilise limited recourse borrowing arrangements.

And I should say, SMSFs are still able to purchase residential properties. The change here is that they can't borrow to purchase residential properties. We're responding, in fact, not only to the issue of the Council of Financial Regulators but also of the Murray inquiry, which found that these arrangements can represent a significant risk to some individuals' retirement savings, particularly when they have low-balance SMSFs with high asset concentration or personal guarantees.

As Minister for Women, when I talk with women's organisations— Senator Bragg: There's no systemic risk identified. None of it is right. It's all wrong.