Bill Debate · Second Reading

Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026; Second Reading

Senate · Monday 29 June 2026

Continued from Monday 22 June 2026.

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The Senate debated the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026, which included measures to remove the $2 minimum threshold for tax-deductible donations, streamline trust reporting, exclude tobacco and gambling from R&D tax incentives, and index Medicare levy thresholds. The Coalition supported the technical amendments but criticised the government's broader tax agenda and proposed an amendment to remove a capital gains tax liability for widows. The Greens moved an amendment to completely exclude gambling and tobacco industries from R&D incentives, including harm minimisation research, which was opposed by the Coalition. The Government defended the bill as part of a broader productivity and tax reform agenda.

Outcome

The debate concluded with the bill proceeding to further consideration; the Greens' amendment to fully exclude gambling and tobacco from R&D incentives was noted but not passed, and the Coalition's amendment regarding the widow tax was flagged for future movement.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Continued the debate

Matthew Canavan (QLD) (Liberal National Party) LNP

Canavan indicated the Coalition's support for the technical measures in the bill, including the removal of the $2 donation threshold, trust reporting efficiencies, and Medicare levy indexing. Canavan criticised the bill's title as misleading given the government's recent tax changes, which he argued broke trust with taxpayers. Canavan supported excluding tobacco and gambling from R&D incentives but warned against setting a precedent for political interference in the broad-based system. Canavan announced the Coalition would move an amendment to remove the capital gains tax liability for widows, termed the 'widow tax', to ensure fairness.

Government response

Lisa Darmanin (VIC) (Australian Labor Party) ALP

Darmanin argued the bill modernised the tax system to reflect technological changes and reduce compliance burdens. Darmanin highlighted the removal of the $2 donation threshold to support the goal of doubling philanthropic giving by 2030 and the integration of trust beneficiary reporting to improve efficiency. Darmanin defended the exclusion of tobacco and gambling from R&D incentives as a measure to prevent public funds from subsidising harmful activities, while noting harm minimisation research remained eligible. Darmanin framed the reforms as part of a broader agenda to lift productivity and strengthen confidence in the tax system.

Opposition response

Kerrynne Liddle (SA) (Liberal Party) Liberal

Liddle argued the bill was rushed and part of a broader tax package that lacked proper consultation and would harm housing supply and investment. Liddle supported the Medicare levy indexing and the exclusion of tobacco and gambling from R&D incentives but criticised the government for failing to address illicit tobacco trade and for relying on bracket creep. Liddle promoted the Coalition's Tax Back Guarantee to index all income tax thresholds to inflation, arguing this would prevent silent tax increases. Liddle cited industry warnings that the broader budget measures would reduce new home construction and increase rents.