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

Darmanin supported the legislation, arguing it addressed long-standing distortions in the housing market caused by previous tax concessions. Darmanin cited evidence that dwelling prices had increased more than twice the rate of household incomes since the introduction of the capital gains tax discount, contributing to wealth inequality. Darmanin highlighted that the reforms would maintain small business concessions and introduce targeted amendments to protect charitable giving and clarify exemptions for income support recipients.

Pocock welcomed the winding back of property tax concessions but criticised the bill as rushed and incomplete, noting last-minute government concessions on startup discounts and ministerial powers. Pocock argued that vague definitions for innovative business carve-outs created uncertainty for early-stage employees and founders. Pocock foreshadowed amendments to split the bill, protect grandfathered concessions, introduce income averaging, and reinvest revenue into social housing.

Hume strongly opposed the bills, accusing the government of breaking election promises and rushing legislation through parliament without adequate scrutiny. Hume argued the reforms would reduce housing supply, increase rents, and punish young Australians who invest to save for deposits. Hume claimed the changes would discourage investment and small business growth, describing the package as a breach of faith with the Australian public.

O'Neill defended the reforms as necessary to make the tax system fairer and support workers and first home buyers. O'Neill highlighted the benefits of the Working Australians Tax Offset and the $1,000 instant deduction for ordinary workers. O'Neill noted that the government had responded to stakeholder concerns by moving amendments to expand small business eligibility, protect charitable deductions, and clarify exemptions for income support recipients.

Roberts opposed the bills, describing them as a tax grab that would hinder wealth creation and intergenerational wealth transfer. Roberts argued the reforms would disproportionately affect young people and retirees, while failing to address the root causes of housing affordability. Roberts announced One Nation would move an amendment to remove the capital gains tax and negative gearing schedules from the bill, stating they would oppose the legislation if the amendment failed.

McDonald argued that the capital gains tax changes would devastate the mineral exploration sector by deterring retail investors who fund junior explorers. McDonald noted that the government had already allowed the Junior Minerals Exploration Incentive to expire in 2025, which had previously unlocked over $1.1 billion in capital. McDonald claimed the reforms would undermine Australia's critical minerals strategy and reduce mining investment, citing industry warnings that exploration activity would fall. McDonald stated the coalition would repeal these taxes if elected and called for indexing tax brackets to inflation to end bracket creep.

Brown supported the bills, stating they would help working people keep more of their earnings and improve housing affordability. Brown highlighted the introduction of a permanent working Australians tax offset of up to $250 and a $1,000 standard deduction for work-related expenses, which would reduce compliance costs. Brown explained that negative gearing would be restricted to new builds from 1 July 2027, while existing investments would remain protected. Brown clarified that the capital gains tax reforms would adjust for inflation and include a 30 per cent minimum tax, with exemptions for pensioners and small businesses.

Bell opposed the legislation, describing it as a rushed and broken tax grab that punished aspiration and private wealth creation. Bell argued that the government was engaging in damage control by removing certain provisions and that the reforms would complicate the tax system for ordinary Australians. Bell claimed the bill would negatively impact young people trying to build wealth through shares and property, while failing to address the cost of living crisis. Bell stated that One Nation supported tax cuts but opposed the broader package, arguing it would make the country poorer and increase reliance on government bureaucracy.

Price argued that the legislation failed to create opportunities for small businesses, apprentices, and families to get ahead. Price highlighted that over 45,000 businesses had entered insolvency since the government took office and noted that rising fuel costs would further strain the economy. Price criticised the government for cutting $266 million from apprenticeship incentives while increasing spending on skills advice bureaucracy. Price contended that the reforms would discourage investment and risk-taking, particularly in the Northern Territory where small businesses form the backbone of the community.

Walker supported the bills, framing them as necessary actions to address housing affordability and intergenerational fairness. Walker emphasised that the reforms would deliver tax relief to more than 13 million workers and simplify tax time through the instant deduction. Walker argued that restricting negative gearing to new homes would increase housing supply without affecting existing investors. Walker stated that the capital gains tax changes would create a fairer system by taxing real gains rather than inflationary increases, benefiting the next generation of home buyers.

Hanson opposed the bill, arguing that restricting negative gearing to new homes would force young people to move away from their support networks and family areas. Hanson claimed the reforms would destroy aspiration for young investors and impose additional compliance costs through mandatory property valuations. Hanson stated that the budget would increase red tape and fail to help anyone, particularly those trying to buy homes or invest in shares. Her speech was cut short as the debate was interrupted.