Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026

Senator STEWART (Victoria) (12:27): Philanthropy plays such a vital role in Australia's society. Every day, charities, community organisations and non-profits provide support where it's needed most. Whether it's helping families who are experiencing hardship, funding research, protecting our environment, supporting the arts and culture or responding to natural disasters, the work of these organisations strengthens communities and improves lives right across our country, and they themselves are supported by the generosity of Australians, often through many small donations.

The Albanese Labor government is focused on delivering practical and sensible reforms to our taxation system. The Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026 amends the Treasury legislation to support philanthropic giving and strengthen the integrity of tax administration systems. It removes the requirement that a donation to a deductible gift recipient be valued at $2 or more before the donor may claim the tax deduction, and this is really important because it recognises that every single contribution matters.

These reforms are not isolated technical fixes; they are part of a systemic effort to lift productivity right across the country. After a wasted decade of stagnation under the Liberals and Nationals, we are targeting the practical barriers that hold businesses, communities and individuals back. By making it easier for Australians to give, we are strengthening the social economy, which is such an important contributor to national productivity and wellbeing.

Turning around a decade of weak productivity requires action at every level. From major economic reforms to practical changes, that's exactly what this government is delivering. This bill also amends the eligibility criteria for the research and development tax incentive to exclude activities related to gambling and tobacco—really sensible changes.

This kind of research and development for gambling and tobacco can exacerbate serious health risks, addiction and associated harms. The exclusions will apply broadly, capturing research and development related to all types of gambling, whether these occur digitally or in person, as well as any tobacco products. Excluding these activities ensures that taxpayers are not subsidising this kind of research.

That is really important, and I think Australians will be very, very pleased to learn about that. Where activities are for the sole purpose of harm minimisation, such as helping people to stop smoking or gambling, these activities remain eligible to receive support through the research and development tax incentive. The Albanese Labor government is also increasing support for low-income households by increasing the Medicare levy low-income thresholds for singles, families, seniors and pensioners by 2.9 per cent.

This is in line with recent movements in CPI. In practical terms, it ensures that low-income households continue to be exempt from paying the Medicare levy or will pay a reduced Medicare levy rate if their incomes have increased in line with or less than recent movements on CPI. More than one million low-income earners are expected to benefit from these increases in 2025-26.

It's clear the Albanese Labor government is focused on delivering practical and sensible reforms to our taxation system. The measures presented here today only build on our reforms to deliver a fairer, simpler and more sustainable tax system. They include delivering three tax cuts for every single Australian taxpayer, one in our first term, one this year and one next year; implementing a $1,000 instant tax deduction starting next financial year; making the tax system simpler and delivering more cost-of-living relief for 5.7 million taxpayers; boosting the low-income superannuation tax offset to help deliver a more dignified retirement to 1.3 million Australians, while also better targeting tax concessions on large superannuation balances over $3 million; and a targeted multinational tax integrity package to ensure that large corporations meet their tax obligations in Australia.

These changes will support everyday Australians by putting more money back into household budgets so they can focus on things that matter most. The ACTING DEPUTY PRESIDENT ( Senator Brockman ): Senator Stewart, please resume your seat. Pursuant to order, the time for the second reading contributions on this bill has expired.