Overview
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49, 2026) received royal assent and came into force on 26 June 2026. The Act makes five major changes to Australian tax law across five schedules.
Schedule 1 - Capital Gains Tax Changes
Schedule 1 adjusts the CGT (capital gains tax) rules, including a minimum rate of tax on capital gains. It amends the Income Tax Assessment Act 1997, the Income Tax Assessment Act 1936, the Income Tax (Transitional Provisions) Act 1997, and the Taxation Administration Act 1953.
Schedule 2 - Negative Gearing Deductions for Residential Property
Schedule 2 limits negative gearing deductions for residential property to new builds only. It amends the Income Tax Assessment Act 1997.
Schedule 3 - Working Australians Tax Offset
Schedule 3 introduces a new Working Australians tax offset. It amends the Income Tax Assessment Act 1997.
Schedule 4 - Standard Deduction for Work-Related Expenses
Schedule 4 introduces a standard deduction for work-related expenses. It amends the Income Tax Assessment Act 1997 and the Fringe Benefits Tax Assessment Act 1986.
Schedule 5 - Limited Recourse Borrowing Arrangements
Schedule 5 makes changes to limited recourse borrowing arrangements under the Superannuation Industry (Supervision) Act 1993.
Amounts, Thresholds, and Rates
The source does not specify the exact dollar amounts, thresholds, rates, or commencement dates for individual schedules beyond the overall Act commencement of 26 June 2026.
Key Actions
- Read the full Act text at https://www.legislation.gov.au/C2026A00049 to understand how each schedule applies to your business, investment properties, and super fund.
- If you claim negative gearing on an existing residential investment property, speak to your accountant about how Schedule 2 affects your deductions going forward, as the limitation to new builds is now law.
- If you have a self-managed super fund with a limited recourse borrowing arrangement, ask your SMSF adviser to review the Schedule 5 changes and whether action is required.
- Ask your tax agent or bookkeeper to check whether the new standard deduction for work-related expenses (Schedule 4) or the Working Australians tax offset (Schedule 3) affects your payroll and FBT obligations.
- Set up a legislation alert for this Act at https://www.legislation.gov.au/C2026A00049 to be notified of any amendments or commencement instruments issued.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.