Portfolio — 26 June 2026

Senator Gallagher moved the second reading of the Income Tax Rates Amendment (Tax Reform No.1) Bill 2026 in the Senate, framing it as the opening move in what she described as the most ambitious tax reform package in twenty-five years [TA-260624-senate-7bf3cfa288f1:s103]. The bill is structurally significant: it dismantles the 50% capital gains tax discount, replacing it with cost-based indexation and imposing a 30% minimum tax on capital gains realised from 1 July 2027 [TA-260624-senate-7bf3cfa288f1:s103].

Alongside the CGT overhaul, the bill curtails negative gearing for residential property, restricting the concession to new builds while leaving existing negatively geared properties untouched until the point of sale — a design that limits immediate market disruption while redirecting the tax incentive toward new housing supply [TA-260624-senate-7bf3cfa288f1:s103].

The bill also carries worker-facing measures. A new Working Australians Tax Offset of up to $250 applies to more than 13 million workers, lifting the effective tax-free threshold by approximately $1,800. A $1,000 instant tax deduction for the 2026–27 income year is included as a fulfilled election commitment.

Gallagher's framing positions these elements as a coherent package: CGT and negative gearing reform on the investment side, and direct relief for wage earners on the other.

The observations layer flags several features present in the source record but not fully surfaced in the drafted sentences — including treatment of testamentary trusts, limited recourse borrowing arrangements for residential property within superannuation, and a permanent $20,000 instant asset write-off for small businesses. The record does not confirm whether these were addressed in Gallagher's second reading speech or sit elsewhere in the bill's explanatory material; readers tracking the full legislative perimeter of this bill should treat those items as warranting direct source review.

The segment draws from a single Senate Hansard record, so the account of ministerial framing reflects that record alone.