Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026; Second Reading

Haines criticised the legislative process, noting the bills were introduced with insufficient time for scrutiny and did not represent the final form of the reforms. Haines highlighted concerns about the impact on small businesses and regional housing affordability, while acknowledging the need for tax system fairness. Haines supported an amendment to increase small business capital gains tax concession thresholds and welcomed the instant $1,000 work-related expense deduction.

Willcox opposed the bills, arguing they were an assault on aspiration and broke the Prime Minister's promise of no new taxes. Willcox claimed the reforms would reduce housing supply and increase rents, making it harder for young Australians to enter the property market. Willcox asserted that the budget was designed to manage economic decline rather than growth and would disproportionately affect everyday Australians and small business owners.

Watson-Brown stated that the Greens would support the bill in the House but reserved their position for the Senate inquiry. Watson-Brown argued that while property tax concession reform was necessary, the current legislation contained loopholes that advantaged existing property owners. Watson-Brown expressed concern about the broad ministerial powers granted to the Treasurer and the lack of communication regarding changes to non-housing assets.

Aldred opposed the measures, arguing they created uncertainty for family farmers and small businesses in regional communities. Aldred cited reports from local accountants indicating distress among clients regarding trust taxation and capital gains tax changes. Aldred claimed the reforms threatened the viability of family farming enterprises and the succession planning of agricultural businesses.