House of Representatives — 2 June 2026

The House of Representatives sat on 2 June 2026 for what amounted to the most consequential day of debate on the Albanese government's post-budget tax reform agenda. The Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026 dominated proceedings across question time, second-reading debate, motions and the adjournment, with the government and opposition presenting starkly opposed accounts of the legislation's purpose and consequences.

The tax reform bills contain four principal measures: replacement of the 50 per cent capital gains tax discount with cost-base indexation and a 30 per cent minimum CGT rate from 1 July 2027; limitation of negative gearing to new residential builds while grandfathering existing investments; a $250 working Australians tax offset for 13.3 million workers; and a $1,000 instant work-expense deduction [TA-260602-house-c5d321b8ff24:s063].

Labor members described the package as the most significant tax overhaul in 25 years, projecting up to $2,800 in combined annual benefits per worker by 2028, 30,000 additional homes and 75,000 new home-owners over the next decade [TA-260602-house-c5d321b8ff24:s083]. Independent MP Kate Chaney moved an amendment to restrict the CGT changes to housing assets only, reflecting crossbench concern that extending reform to shares, small-business equity and other asset classes creates confusion and could harm retirees and start-ups [TA-260602-house-c5d321b8ff24:s078].

Opposition Leader Angus Taylor attacked the bills as an unauthorised tax increase, moved a second-reading amendment to strip the negative-gearing and CGT schedules while retaining the $250 offset and $1,000 deduction, and called the measures "toxic taxes" [TA-260602-house-c5d321b8ff24:s013]. Coalition members cited Treasury modelling predicting 35,000 fewer private-sector homes over the decade [TA-260602-house-c5d321b8ff24:s084], warned of rent increases of up to 20 per cent in Sydney and Melbourne, and pledged to repeal the changes if returned to government.

The opposition framed its alternative around a "tax-back guarantee" that would index personal income-tax thresholds to inflation to eliminate bracket creep. Opposition Business Manager Dan Tehan moved to refer both bills to the Standing Committee on Economics for a report by 30 December 2026 [TA-260602-house-c5d321b8ff24:s054]. The Leader of the House secured suspension of standing orders to allow extended debate on 2–3 June and to debate both bills cognately [TA-260602-house-c5d321b8ff24:s002].

Separately, the House completed passage of the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026, with Assistant Treasurer Daniel Mulino moving government amendments to adjust Medicare levy low-income thresholds and pension supplement provisions for Australians temporarily overseas, and amending the bill's long title to insert "social security and veterans' affairs" [TA-260602-house-c5d321b8ff24:s011].

The bill was read a third time [TA-260602-house-c5d321b8ff24:s012].

Question time reinforced the day's fiscal themes. Taylor opened by asking the Prime Minister to confirm Australians will pay $77 billion more tax than they receive back [TA-260602-house-c5d321b8ff24:s140]. Prime Minister Albanese responded by citing homeownership legislation and first-home-buyer benefits, reiterating five income-tax cuts and five minimum-wage increases under Labor.

Treasurer Chalmers warned that the opposition opposes bracket-creep relief and flagged an upcoming vote on the matter [TA-260602-house-c5d321b8ff24:s162]. Minister Rishworth announced a 4.75 per cent award-reliant wage increase and a 6 per cent minimum-wage lift [TA-260602-house-c5d321b8ff24:s157]. Housing Minister O'Neil clarified that a "new dwelling" means a genuinely new addition to housing supply [TA-260602-house-c5d321b8ff24:s166], announced migration reduction and a $47 billion housing program, and fielded questions from LNP members on whether second dwellings on existing titles qualify and on migration's impact on affordability.

Climate Minister Bowen reported battery-storage expansion and residential energy-bill reductions of up to 10.7 per cent [TA-260602-house-c5d321b8ff24:s167], while criticising the opposition's UNGI scheme.

Beyond tax and housing, the Appropriation Bill No. 1 (2026–27) moved to the Federation Chamber for consideration in detail. During the education portfolio segment, Labor members promoted a universal three-day early-education guarantee, a 15 per cent pay rise for early-childhood educators, a $20 billion Better and Fairer Schools Agreement and a 20 per cent student-debt cut.

Opposition members called the budget a series of broken promises and flagged Victoria's lack of a bilateral school-funding agreement. In the defence portfolio segment, the government announced a $3.5 billion down-payment for the Osborne Naval Shipyard and $12 billion for Henderson to build SSN-AUKUS submarines [TA-260602-house-c5d321b8ff24:s118], projected total defence spending of $887 billion to 2035–36, and announced $850 million for a defence and aerospace precinct at Newcastle Airport to manufacture naval strike missiles with Kongsberg Australia [TA-260602-house-c5d321b8ff24:s124].

The Minister for Defence Industry reported a doubling of guided-weapons funding to $36 billion [TA-260602-house-c5d321b8ff24:s126]. The opposition argued spending remains around two per cent of GDP, called for three per cent, criticised a $5,000 cap on allied-health services for veterans taking effect 1 July 2027, and raised concerns about partial divestment of HMAS Penguin [TA-260602-house-c5d321b8ff24:s125].

AUKUS drew sustained scrutiny in a matter of public importance proposed by Independent MP Allegra Spender, who warned of eroding public confidence and called for greater transparency on the submarine programme's cost, risk and delivery timeline [TA-260602-house-c5d321b8ff24:s042]. The Assistant Minister for Immigration and Foreign Affairs outlined the phased acquisition plan and infrastructure upgrades at HMAS Stirling and Henderson.

Independent MPs questioned the estimated $370 billion lifetime cost and the shift from five to three second-hand Block IV Virginia-class submarines. Labor MP Monique Ryan urged a full parliamentary review of AUKUS Pillar 1 to assess cost, risk and strategic rationale [TA-260602-house-c5d321b8ff24:s051].

Across members' statements, private members' business and the adjournment debate, recurring themes included aged-care waiting lists — Independent Deputy Speaker Helen Haines cited nine-month delays for approved home-care packages affecting over 100,000 Australians [TA-260602-house-c5d321b8ff24:s022] — small-business budget measures such as the $20,000 instant asset write-off, loss carry-back and CGT exemptions for 90 per cent of small enterprises [TA-260602-house-c5d321b8ff24:s025], palliative-care funding gaps with the Fraser Coast Hospice entering administration [TA-260602-house-c5d321b8ff24:s087], gambling-advertising reform including a ban on inducements and enhanced BetStop, new PBS listings for blood-cancer treatments, the Workforce Australia overhaul replacing the compliance-focused system with three service streams [TA-260602-house-c5d321b8ff24:s072], and community-level investments from aquatic centres to oyster-reef restoration.

In procedural business, the Speaker confirmed David Farley's election for the Farrer vacancy, the House discharged Mr McCormack from the Standing Committee on Industry, Innovation and Science and appointed Mr Conaghan, and the Auditor-General's performance audit on investigations in the Department of Defence was tabled [TA-260602-house-c5d321b8ff24:s040].