Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026; Reference to Committee

Opened the debate

Spender moved the motion to refer the bills to the Standing Committee on Economics, arguing that while tax reform was necessary, the government was rushing legislation without adequate scrutiny or community understanding. Spender highlighted concerns that the current proposal failed to address issues affecting small businesses and startups, and noted that the revenue neutrality of the package was unclear, potentially reducing public trust. Spender argued that the bill needed to balance fairness and prosperity, suggesting that without proper inquiry, the reform might fail to deliver intended economic benefits or could set back future reform efforts. Spender urged the government to slow down to ensure the legislation was robust and widely supported.

Government response

Rae moved that the debate be adjourned, opposing the referral of the bills to committee. By seeking to end the debate, the minister indicated the government's preference to proceed with the legislation without the additional scrutiny proposed by the opposition and independent members. This action signalled the government's intent to pass the tax reform measures through the House without the delay associated with a committee inquiry.

Opposition response

Tehan supported the motion to refer the bills to committee, arguing that the legislation required full examination to reveal its details and impacts on various sectors. Tehan claimed the government had misled the public and that the bills would negatively affect small businesses, farmers, and the tech sector. Tehan asserted that the Prime Minister lacked understanding of the budget's details and that the legislation was built on broken promises. Tehan argued that committee scrutiny was necessary to ensure transparency and to allow the parliament to properly interrogate the measures before they were passed.