Portfolio — 26 June 2026

Treasurer Jim Chalmers issued two PM media releases on 25 June marking what the government describes as a generational tax reform moment. The first release moved a tax reform Bill to a second reading, billing it as the most ambitious tax overhaul in twenty-five years [TA-260625-treasu-6e5c74b47399]. The centrepiece business measures make the $20,000 instant asset write-off permanent and introduce a two-year loss carry-back for companies with global income below $1 billion — measures expected to benefit up to 85,000 firms annually [TA-260625-treasu-6e5c74b47399].

The Bill also expands the 50 percent active-asset CGT reduction eligibility threshold from $2 million to $10 million in turnover, which the Treasurer said would bring 2.7 million small businesses — 98 percent of all active businesses — within scope.

The second release announced that the Bill has passed Parliament, triggering its operative effects [TA-260625-treasu-6ff12d4cacc2]. On the worker side, the legislation locks in two further rounds of income tax cuts, introduces the Working Australians Tax Offset, and creates an instant tax deduction for workers — delivering up to $2,816 per year to the average worker from 2028 [TA-260625-treasu-6ff12d4cacc2].

On housing, the Bill restricts negative gearing to new builds from 1 July 2027 with grandfathering for existing investors, and restores the capital gains tax discount to what the government describes as its original intent from the same date [TA-260625-treasu-6ff12d4cacc2]. Chalmers framed both the negative gearing and CGT changes explicitly as housing affordability measures, not simply revenue adjustments — a framing that links the tax portfolio to housing supply and first-home buyer access.

Across both releases, Chalmers characterised the three right-wing parties as having voted against the tax cuts and what he called the fair-go for first-home buyers, describing their position as "anti-worker". The two releases together present a deliberately layered package: permanent investment incentives and loss carry-back for business, expanded CGT concessions for small business owners, income tax relief and new offsets for workers, and structural changes to negative gearing and CGT for housing.

The density of the package — spanning business investment, income tax, and housing in a single instrument — is the defining feature of today's ministerial communication.