Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026; Limitation of Debate

Opened the debate

Pocock moved to refer Schedule 1 of the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026 to the Economics Legislation Committee for inquiry and report by 14 September 2026. Pocock subsequently sought leave to amend his motion to instruct the committee of the whole to divide the bill, incorporating Schedule 1 into a separate bill. This action aimed to isolate the capital gains tax changes for distinct consideration.

Government response

Gallagher stated the government opposed separating the bills, arguing that the schedules must proceed as a package to ensure fiscal coherence. Gallagher noted that one part of the reform helps fund the other, citing support from stakeholders and experts who recommended adopting the reforms together. The government maintained that delaying certain elements while proceeding with others would undermine the integrity of the tax system rebalancing.

Opposition response

Chandler moved to amend Pocock's motion to include Schedule 2, seeking to refer both capital gains tax and negative gearing provisions to the Economics Legislation Committee for inquiry by 21 September 2026. Chandler argued that the previous inquiry was insufficient and that Treasury officials had not reviewed all submissions. The opposition contended that further scrutiny was necessary to address concerns about the impact on savings, investment, and living standards.