2026
Australian taxpayers deserve a say on tax changes, says The Tax Institute
SYDNEY, 29 May 2026: The Tax Institute expresses serious concern following the Government’s rushed introduction of the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 into Parliament. While the instant tax deduction measure was briefly consulted on, the remaining measures, including major changes to the capital gains tax (CGT) discount and negative gearing, have been introduced without any public consultation.
The Tax Institute supports efforts to improve Australia's tax system and recognises that meaningful tax reform is complex and often challenging. However, changes of this magnitude should not be rushed through Parliament without consultation with taxpayers, tax professionals, businesses and the broader community.
The Bill introduces four measures announced in the Federal Budget 2026–27: changes to the CGT discount, limitations on negative gearing, the Working Australians Tax Offset, and the introduction of a standard deduction for work‑related expenses.
The CGT and negative gearing measures were not subject to any public consultation before being introduced into Parliament. No consultation papers were released, no exposure draft legislation was published, and no opportunity was provided to the public to have their say.
The Bill has been referred to the Senate Economics Legislation Committee for inquiry and report by 22 June 2026, allowing only a short window around three weeks for stakeholders to examine and respond to complex changes that will have long-term implications for many Australians and businesses. This represents the only formal opportunity for stakeholders to provide feedback on the measures, marking a worsening of the governments poor track record of consultation.
Julie Abdalla, Head of Tax & Legal at The Tax Institute, says the approach represents an alarming shift in how tax measures are developed.
“The Government’s failure to consult on measures of this scale is deeply concerning. The proposed changes to the CGT discount and negative gearing have far-reaching implications for Australian taxpayers and our economy. Introducing these measures without consultation is a disservice to the Australian people and the businesses that fuel our economy.”
"Tax reform is important and necessary, but good tax reform requires careful consideration and consultation. These measures represent some of the most significant changes to Australia's tax system in decades, yet they have been introduced without any public engagement whatsoever."
"It is alarming that no tax experts were engaged in the process of developing these changes. Not a single professional tax association, representing hundreds of thousands of tax professionals collectively, was consulted on these measures before legislation was introduced. Worse still, Australian taxpayers have not been given the opportunity to provide feedback on how these changes may affect their lives, investments and businesses."
Ms Abdalla says recent developments reflect a broader disturbing pattern in the Government’s approach to consultation.
“We are seeing a shift from already compressed consultation processes to now introducing significant tax changes without any public consultation at all. That undermines confidence in the policy development process and has to stop.”
The Tax Institute also questioned whether recent consultation processes are delivering meaningful outcomes, citing The Tax Institute’s submission made jointly with other professional bodies on the instant tax deduction.
“When comparing the earlier exposure draft of the instant tax deduction with Schedule 4 of the Bill introducing the measure, there appears to be little evidence that stakeholder concerns have materially influenced the legislative design. This raises concerns about whether consultation is being treated by the government as a genuine process, or merely an optional tick-the-box exercise.”
Ms Abdalla said consultation is not simply a procedural step, but a crucial part of developing effective tax policy.
"Consultation helps identify unintended consequences, practical implementation issues and opportunities to improve policy design. It results in better legislation and greater community confidence in the tax system."
"When consultation is rushed, or occurs only after a Bill has been introduced, stakeholders are effectively responding to a largely settled policy position. That is not a substitute for genuine engagement during policy development."
Ms Abdalla noted that the measures were not taken to the election as specific commitments and therefore had not been subject to public scrutiny through the electoral process either.
"These reforms were not measures that Australians were asked to vote on at the election. Given their significance, it is entirely reasonable to expect that taxpayers would have an opportunity to consider the proposals and express their views before legislation is introduced."
Ms Abdalla urged the Government to use the Senate Committee process to engage constructively with stakeholders and genuinely take on board feedback.
"The Senate Committee inquiry is now the only formal avenue available for stakeholders to provide input. We encourage the Government to carefully consider the evidence and recommendations put forward through that process."
"Australian taxpayers deserve a tax system that is not only fair and efficient, but one that is developed through a transparent and consultative process. Reforms of this scale should not be rushed."
The Tax Institute remains committed to working constructively with the Government to ensure Australia’s tax system is fair, efficient and sustainable.
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- 2026
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