Treasury Laws Amendment (Tax Reform No. 2) Bill 2026; Second Reading

Darmanin defended the bill as a practical step in the government's tax reform agenda, focusing on business resilience and investment certainty. Darmanin highlighted support from business groups for the loss carry-back and permanent instant asset write-off measures. Darmanin explained that the PNG Chiefs tax exemption supported broader Pacific partnership goals, including youth engagement and violence prevention programs. Darmanin noted that Schedule 4 amendments were the result of consultation and committee recommendations to address specific ownership transfer issues.

Bell argued that the bill was necessary only to fix mistakes made by the government in previous legislation, specifically regarding taxes on widows and divorcees. Bell criticised the government for rushing the original tax changes through parliament with limited debate and scrutiny. Bell claimed the government's economic policies had led to rising rents and falling house prices, contradicting budget projections. Bell asserted that the government treated public money as a personal resource and failed to manage immigration and economic outcomes effectively.

Chandler stated that the coalition would support the bill because it improved cash flow and provided certainty for small businesses through loss carry-back and permanent asset write-offs. However, she argued that the $20,000 threshold for the instant asset write-off was too low given current business costs and that a higher threshold would better encourage investment. Chandler described the government's reversal on the widows tax as a policy backdown forced by opposition advocacy and public concern. Chandler urged the government to listen to stakeholders and provide a broader agenda supporting productivity and enterprise.

Duniam questioned whether the government's initial failure to protect widows and those in relationship breakdowns was intentional or incompetent, calling it a punitive tax grab. Duniam argued that the government had denied the issue existed despite warnings, only fixing it after sustained opposition pressure. Duniam linked the tax changes to broader economic concerns, including falling house prices and rising rental costs. Duniam commended the opposition leader for the campaign against the punitive measures and supported the bill as a necessary correction.