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

The CHAIR (13:57): I will now deal with amendments circulated by Senator David Pocock. The question is that the amendments on sheets 3869, 3872, 3873, 3874, 3875, 3876, 3877 and 3879 be agreed to. Senator David Pocock's circulated amendments to the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 — SHEET 3869 (1) Clause 2, page 2 (table items 2 to 4), omit the table items.

(2) Omit Schedule 1 and incorporate it as an amending schedule to a separate bill (the second bill). (3) Insert at the beginning of the second bill: A Bill for an Act to amend the law relating to taxation, and for related purposes The Parliament of Australia enacts: 1 Short title This Act is the Treasury Laws Amendment (CGT Adjustments) Act 2026. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table.

Any other statement in column 2 as effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provisions Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 2.

Schedule 1, Part 1 The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. 3. Schedule 1, Part 2 At the same time as the Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 commences. However, the provisions do not commence at all if that Act does not commence. 4.

Schedule 1, Parts 3 and 4 The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act. 3 Schedules Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. _____ SHEET 3872 (1) Clause 2, page 2 (table item 1), omit "to 3", substitute "to 4".

(2) Page 2 (after line 11), after clause 3, insert: 4 Independent review of amendments Requirement to conduct review (1) The Minister must cause an independent review to be conducted of the operation of the amendments made by this Act. Timing of review (2) The persons conducting the review must complete the review before 1 July 2029. (3) For the purposes of subsection (2), the review is completed on the day the report of the review is given to the Minister.

Minister to be given report of review (4) The persons conducting the review must give the Minister a written report of the review. Minister to table copy of report of review (5) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report. _____ SHEET 3873 (1) Clause 2, page 2 (at the end of the table), add: 7.

Schedule 5 The day after this Act receives the Royal Assent. (2) Page 65 (after line 25), at the end of the Bill, add: Schedule 5 — Small business instant asset write off Income Tax Assessment Act 1997 1 Section 328-170 Omit "$1,000", substitute "$30,000". 2 Section 328-180 (heading) Omit "$1,000", substitute "$30,000". 3 Paragraph 328-180(1)(b) Omit "$1,000", substitute "$30,000". 4 Paragraph 328-180(2)(a) Omit "$1,000", substitute "$30,000". 5 Paragraph 328-180(3)(a) Omit "$1,000", substitute "$30,000". 6 At the end of section 328-180 Add: (6) Any amount of $30,000 referred to in this section is indexed annually.

Note: Subdivision 960-M shows you how to index amounts. 7 Subsection 328-215(4) Omit "$1,000", substitute "$30,000". 8 Subsection 328-250(1) Omit "$1,000", substitute "$30,000". 9 Subsection 328-250(4) (heading) Omit "$1,000", substitute "$30,000". 10 Subsection 328-253(4) (heading) Omit "$1,000", substitute "$30,000". 11 Section 960-265 (after table item 12) Insert: 12A $30,000 limit for small business depreciating asset deductions section 328-180 Income Tax (Transitional Provisions) Act 1997 12 Subsection 328-180(4) Omit "$1,000", substitute "$30,000". 13 Paragraph 328-180(4 A)( b) Omit "$1,000", substitute "$30,000". 14 Subsection 328-180(5) Omit "$1,000", substitute "$30,000". 15 Subsection 328-180(6) Omit "$1,000", substitute "$30,000". 16 Subsection 328-181(2) Omit "$1,000", substitute "$30,000". 17 Subsection 328-181(3) Omit "$1,000", substitute "$30,000". 18 Subsection 328-181(5) Omit "$1,000", substitute "$30,000". _____ SHEET 3874 (1) Schedule 1, page 36 (after line 35), after item 46, insert: 46A Section 152-5 Omit "$6,000,000", substitute "$12,000,000". 46B Subsection 152-10(1AA) Repeal the subsection, substitute: (1AA) You are a CGT small business entity for an income year if you are a *small business entity for the income year.

Note: For the purposes of subsection (1A) or (1B), in determining whether an entity would be a small business entity, see also sections 152-48 and 152-78. 46C Section 152-15 Omit "$6,000,000", substitute "$12,000,000". (2) Schedule 1, page 37 (after line 6), after item 47, insert: 47A Subsection 165-115 AA( 1) Omit "$6,000,000", substitute "$12,000,000". 47B Subsection 165-115 GC( 4) Omit "$6,000,000", substitute "$12,000,000". 47C Subparagraph 328-430(1)(d)(ii) Omit ", or would be satisfied in that income year if paragraph 152-10(1AA)(b) were disregarded". _____ SHEET 3875 (1) Schedule 1, item 30, page 29 (after line 13), after subsection 115-102(1), insert: (1A) This section also applies to a *discount capital gain if: (a) you are an individual; and (b) neither section 115-105 nor 115-110 (about foreign or temporary residents) applies to the discount capital gain; and (c) you make the discount capital gain from a *CGT event happening on or after 1 July 2027 in relation to a *CGT asset covered by subsection (3A).

(2) Schedule 1, item 30, page 29 (after line 19), after subsection 115-102(3), insert: (3A) This subsection covers a *CGT asset in relation to which all of the following paragraphs apply: (a) the CGT asset is *equity interests in the *shares of a company issued to you at a particular time; (b) subsection 360-40(1) (about early stage innovation companies) applies to the company immediately after that time; (c) the issue of those shares is an *acquisition of *ESS interests under an *employee share scheme.

(3) Schedule 1, item 30, page 29 (line 29), omit "the *discount capital gain", substitute "a *discount capital gain to which this section would otherwise apply because of that subsection". (4) Schedule 1, item 30, page 30 (after line 4), at the end of section 115-102, add: (6) Despite subsection (1A), you may choose for this section not to apply to a *discount capital gain to which this section would otherwise apply because of that subsection.

Note: Instead, the cost base of the CGT asset may be able to be indexed (see subsection 110-36(1A)). _____ SHEET 3876 (1) Schedule 1, item 58, page 40 (line 24), after "30% on", insert "so much of". (2) Schedule 1, item 58, page 40 (line 25), after "(before applying offsets)", insert "as exceeds $18,200". (3) Schedule 1, item 58, page 41 (line 12), after "an income year is", insert "so much of".

(4) Schedule 1, item 58, page 41 (line 15), at the end of subsection 119-5(1), add "as exceeds $18,200". _____ SHEET 3877 (1) Schedule 1, item 58, page 41 (after line 21), after paragraph 119-5(2)(a), insert: (aa) the capital gain does not arise from a *CGT event happening in relation to a *CGT asset of a trust estate resulting from the will of a deceased individual; and _____ SHEET 3879 (1) Schedule 1, page 36 (before line 30), before item 45, insert: 44B Before Division 130 Insert: Division 129A — Capital gains averaging Guide to Division 129A 129A-1 What this Division is about ‚ This Division requires the Minister to make rules allowing capital gains made in an income year to be averaged over a 5-year period.

The rules may set eligibility requirements and modify the operation of this Act to give effect to the capital gains averaging. The rules are legislative instruments. This Division requires the Minister to make rules allowing capital gains made in an income year to be averaged over a 5-year period.

The rules may set eligibility requirements and modify the operation of this Act to give effect to the capital gains averaging. The rules are legislative instruments. Table of sections Operative provisions 129A-5 Capital gains averaging Operative provisions 129A-5 Capital gains averaging (1) The Minister must, by legislative instrument, make such rules as are necessary to allow you to average any *capital gains you make in an income year over a 5-year period that includes the income year in which you make the gain.

(2) Without limiting subsection (1), the rules may: (a) specify requirements that must be met, or circumstances that must exist, for the rules to apply to your *capital gains; or (b) modify the operation of any provision of this Act; or (c) include application, saving or transitional provisions. (3) The first rules under subsection (1) must be made within 3 months of the commencement of this section.