Overview
The Treasury Laws Amendment (Tax Reform No. 2) Act 2026 (Act No. 71, 2026) received royal assent and came into force on 26 August 2026. The Act is administered by the Department of the Treasury.
The Act amends four pieces of legislation:
- Income Tax Assessment Act 1997
- Income Tax Assessment Act 1936
- Taxation Administration Act 1953
- Income Tax (Transitional Provisions) Act 1997
What the Act covers
The Act introduces four separate tax changes across four schedules.
Schedule 1 - Loss carry back tax offset
This schedule provides an offset that allows eligible companies to offset current losses against past profits in order to receive a tax refund.
Schedule 2 - $20,000 instant asset write-off
This schedule provides a $20,000 instant asset write-off for small business entities. The amendments are made to the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997.
Schedule 3 - PNG Chiefs Limited employment income tax exemption
This schedule introduces an income tax exemption related to PNG Chiefs Limited employment.
Schedule 4 - Negative gearing amendments
This schedule amends the Income Tax Assessment Act 1997 in relation to negative gearing and may affect how deductions are claimed on investment properties.
Key actions
- Small business entities can check eligibility for the $20,000 instant asset write-off under Schedule 2 by reviewing the Act at legislation.gov.au/C2026A00071.
- Businesses that have made tax losses can read Schedule 1 of the Act at legislation.gov.au/C2026A00071 to determine whether the loss carry back tax offset applies to their situation.
- Investment property owners can review the negative gearing amendments under Schedule 4 at legislation.gov.au/C2026A00071.
- The full Act text is available to download or print at legislation.gov.au/C2026A00071 to share with an accountant or bookkeeper.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.