Chartered Accountants ANZ urge Government to prioritise clear, workable implementation as tax bill legislation introduced

Chartered Accountants Australia and New Zealand (CA ANZ) acknowledge the introduction of Treasury Laws Amendment (Tax Reform No.1) Bill 2026, which represents the most significant changes to Australia's tax system in decades. 

CA ANZ Group Executive Advocacy, Public and Government Affairs, Damian Ogden, said the scale of change should be recognised. 

"It is difficult to deliver genuine structural change to the tax system. This bill goes beyond tinkering at the edges, and we encourage the Government to continue pursuing large-scale changes that strengthen the system in the long-term,” he said.

“We also encourage the Government to prioritise productivity and fiscal prudence as well as clear, ongoing consultation as the measures move through Parliament.”

On Capital Gains Tax 

CA ANZ Australian Leader - Tax, Superannuation and Financial Services, Susan Franks CA, said the Capital Gains Tax (CGT) changes represent one of the most substantial updates to the system in decades. 

"Bringing long-held assets into the tax net, shifting from the discount to indexation, and introducing a minimum tax rate are substantial structural changes that will reshape how Australians think about investment and long-term planning." 

Ms Franks cautioned that the success of these changes will depend on careful design, clear communication, and effective consultation. 

"The scale of change introduces significant complexity, particularly around transitional arrangements, the valuation of assets and the interaction between old and new rules,” she said.

“This will be especially challenging for small business owners, where assets such as goodwill are harder to value and compliance costs may be higher.”

"Ensuring taxpayers understand the changes and the rationale behind them will be critical to maintaining confidence in the system." 

On small business and start-ups 

Ms Franks said CA ANZ notes that targeted CGT carve‑outs for small businesses and start‑ups are not included in the Bill introduced yesterday but believes they should be considered in future iterations. 

"These sectors take on added risk and drive innovation, and the tax system should recognise their unique contribution," she said. 

"For many start‑ups and growing businesses, value is built over time with very limited cost bases. The current settings don’t always reflect that reality, and we would strongly encourage Government to revisit ideas such as income averaging and a 50% discount on goodwill as the reforms progress." 

"Thoughtful implementation will be essential to minimise unintended consequences and ensure the system remains fair and fit for the future." 

Ms Franks welcomed the retention of the existing small business CGT concessions but noted that the thresholds for these concessions have not been updated since 2007. 

"Given how business values have changed over the past 20 years, it is timely to consult on whether the thresholds remain appropriate,” she said.

On negative gearing 

Ms Franks said the negative gearing changes represent a major shift for many investors, and that accurate public understanding of the changes is essential. 

"Restricting negative gearing to new residential properties will shape investment decisions, changing cash-flow dynamics and adding complexity that taxpayers and advisers will need to navigate carefully,” she said.

"It is important for Australians to understand that losses are not lost. For investors who hold both negatively and positively geared properties, a loss on one can still offset income from another.”

“Losses also remain available to offset future capital gains on the sale of residential properties that have been negatively geared. Public conversation about these changes deserves to be accurate." 

On personal income tax 

The bill also includes two personal tax measures -- a $1,000 standard deduction for work-related expenses and the Working Australians Tax Offset -- aimed at simplifying the system and providing relief for workers. 

"The Working Australians Tax Offset provides relief for many workers. However, Australia's top marginal rate applies at a comparatively low-income threshold -- lower than the majority of comparable OECD nations,” she said.  

Ms Franks acknowledged these as welcome initial steps while noting further work remains on the personal income tax system.

CA ANZ's role going forward 

Mr Ogden said CA ANZ's focus in the weeks ahead will be on ensuring members and their clients have the information they need, and on engaging constructively with the legislative process. 

"Many Australians, including Chartered Accountants, have spent decades building their small businesses, employing people and serving their communities. CA ANZ will be engaging through the appropriate channels to ensure their circumstances are carefully considered as the legislation progresses through Parliament,” he said.

"Our members are on the front line of helping Australians understand and navigate these changes. We take that responsibility seriously." 

"We will continue to provide evidence-based advice and work with Government and Parliament to advocate for legislation that is workable and fair.”

About Chartered Accountants Australia and New Zealand

Chartered Accountants Australia and New Zealand represents more than 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.

www.charteredaccountantsanz.com

For more information contact: