Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026
Dr SCAMPS (Mackellar) (12:35): I rise to speak on Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026. At the outset, let me say I support the measures contained in schedule 1, which strengthen the integrity and accountability of the tax practitioner regime. I also support the reforms in schedules 4 and 5, which improve Australia's competition framework and give effect to nationally agreed competition principles.
I want to focus my remarks today, however, on schedules 2 and 3. These schedules deal with the foreign residents capital gains tax regime, in particular the implications of those changes for investments in Australia's renewable energy sector. Schedule 2 broadens the foreign resident capital gains tax regime to ensure gains from assets connected to Australia's land and natural resources are appropriately taxed, and I support the intent of these changes in principle.
It is entirely reasonable that foreign investors pay tax on gains derived from assets that draw their value from Australia's land and natural resources. That has long been a principle of our tax system, and it is consistent with international practice. I also accept the need for greater clarity in the law.
The government has identified uncertainty around the treatment of assets attached to land, and resolving that ambiguity will help create a more consistent and predictable tax framework. But, while I support the objective, we must also be mindful of the consequences. The definition of 'real property' being legislated captures a broad range of land connected assets, including wind turbines, solar installations and battery storage projects.
In practical terms, that changes the tax treatment of many renewable energy investments. At a time when Australia is seeking to attract enormous amounts of private capital to fund the energy transition, we need to ensure that sensible tax reforms do not inadvertently discourage the very investment we are relying upon to deliver affordable, reliable and cleaner energy and do not unfairly punish investments made in good faith based on the rules of the day.
That brings me to schedule 3. The bill provides transitional relief through a 50 per cent capital gains tax discount for eligible foreign investors in renewable energy projects. The discount applies to both direct and indirect investments and covers assets such as wind farms, solar farms and battery storage facilities.
That relief is very welcome. However, as originally drafted, the concession was due to sunset on 30 June 2030—a very short transitional window. I did not believe that was sufficient.
The message from the clean energy and investment sectors has been clear and consistent: a four-year transition period created significant uncertainty and risked undermining future investment decisions. Stakeholders also warned that the original 2030 deadline risked distorting market behaviour, creating pressure for the premature disposal of assets and potentially driving capital away from Australia altogether.
That would not be in our national interest. The reality is that international investors continue to provide a substantial proportion of the capital required for utility-scale renewable energy projects in Australia. While I would certainly welcome greater participation by domestic investors, we cannot ignore the important role international capital currently plays in building the generation and storage assets our energy system, quite frankly, needs.
If we make Australia a less attractive destination for that investment, the consequences will ultimately be felt by Australian households and businesses. Less investment means fewer projects. Fewer projects mean less competition in the domestic electricity market, and that risks higher power prices and reduced energy security at a time when Australians can least afford it.
I'm pleased that the government has engaged constructively on this issue and intends to move an amendment extending the transitional arrangements to 2040, similar to what I proposed in the amendment that I circulated but have since withdrawn. A 2040 end date better reflects the realities of renewable energy investment and that these projects are often planned, financed, constructed and operated over periods of 10 to 15 years or more.
The amended timeframe provides a more credible transition pathway and gives investors greater certainty while still allowing the government to implement its broader policy intent. I want to thank the Assistant Treasurer for his willingness to listen to industry concerns and engage constructively on this matter. While some of the concerns remain, particularly regarding the retrospective impact of these changes on investments already made, the extension to 2040 is a significant improvement and an important step forward towards preserving Australia's attractiveness as a destination for long-term clean energy investment.
For those reasons and noting the improvements the government has agreed to make, I commend the bill to the House. Question agreed to. Bill read a second time.
Message from the Governor-General recommending appropriation announced.