\u00b7 CPA Australia warns of complexity, uncertainty as reform Bill introduced
\u00b7 Government\u2019s decision to legislate first, consult later is concerning
\u00b7 Accountants and financial advisers will be left to advise clients on a half-built tax system
\u000fAustralia\u2019s largest accounting body CPA Australia has warned the Government\u2019s tax reform legislation risks creating a more complex and uncertain system, after the Treasury Laws Amendment Bill 2026 was introduced into Parliament today.
While the Bill delivers the core elements of the Federal Budget\u2019s tax package \u2013 including changes to capital gains tax (CGT), negative gearing, the Working Australians Tax Offset and the proposed standard deduction \u2013 but leaves critical components unresolved.
CPA Australia Tax Lead Jenny Wong said the most structurally significant measure for private business and family wealth had been deferred.
\u201cThis Bill is consistent with the CGT and negative gearing changes announced in the Budget, however the proposed minimum tax on discretionary trusts \u2013 arguably the most consequential reform for private business owners \u2013 has been split into a separate Bill, leaving a major gap in the system,\u201d Ms Wong said.
Ms Wong said the Government\u2019s decision to introduce sweeping reforms before completing consultation was deeply concerning.
\u201cWe would encourage the Government to consult first and legislate later. Introducing significant tax changes into Parliament before properly engaging with affected stakeholders is not how tax reform should be done,\u201d Ms Wong added.
Ms Wong said consultation is still ongoing on critical technical issues, including the treatment of capital gains for small and start-up businesses, interactions with managed investment trusts and tax consolidation.
\u201cDespite these issues still being worked through with additional concerns raised by stakeholders, the legislation has been introduced. This leaves small businesses, investors and everyday Australians with material uncertainty about how these changes will apply to them,\u201d Ms Wong said.
CPA Australia warned that implementing the changes in stages risks undermining investment confidence.
\u201cWe acknowledge this is the first tranche of legislation, with more to follow. But Australians cannot plan their financial futures based on half a tax system.
\u201cImplementing reform in tranches creates a two-tier system \u2013 where some Australians know where they stand and others do not. That uncertainty has real consequences for investment decisions being made right now.\u201d
Ms Wong rejected comparisons with past reforms such as the GST.
\u201cThe GST was the product of years of consultation, negotiation and public debate. This is fundamentally different \u2013 a Budget-night announcement followed by staged legislation, with key elements still unresolved,\u201d Ms Wong added.
CPA Australia said the immediate impact of the negative gearing changes highlights the practical challenges of the legislation.
\u201cNegative gearing was wound back on Budget night for investors buying established homes \u2013 but the Government hasn’t shared what counts as a ‘new residential dwelling.’ That definition will be written by the Minister, after the Bill passes. This creates avoidable uncertainty at a time when Australians are making significant, long-term financial decisions.\u201d
Ms Wong said the reforms contradict the Government\u2019s stated objective of simplifying the tax system.
\u201cThe Government has committed to making tax time simpler, but this package does the opposite,\u201d she said.
\u201cIt introduces a new tax offset, a new instant deduction, a new inflation-based CGT framework, a minimum tax rate and revised negative gearing rules, each with different start dates, transitional arrangements and carve-outs.
\u201cThat is not simplification \u2013 it is layering new complexity onto an already complex tax system.”
Ms Wong said multiple start dates, grandfathering provisions and exemptions will make the tax package arguably one of the most complex in recent memory.
\u201cAustralians will need to navigate overlapping rules depending on when assets were acquired, how income is earned and how structures are set up,\u201d Ms Wong said.
\u201cAccountants and financial advisers will be left guiding clients through a system that is still being built, with further changes flagged but not yet legislated.\u201d
CPA Australia is encouraging the Government to reconsider its approach and work more closely with industry.
\u201cWe urge the Government to work with us and other stakeholders to get this right. Tax changes of this scale deserve genuine engagement, proper consultation and a complete legislative package that gives Australian and the market the certainty they need. We look forward to consulting with the Government on the next stage of CGT changes.\u201d
<\/p>\n\n\n\n
About CPA Australia
CPA Australia is Australia\u2019s leading professional accounting body and one of the largest in the world. We have more than 176,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. A CPA is a Certified Practising Accountant. More at cpaaustralia.com.au<\/p>\n","protected":false},"excerpt":{"rendered":"
\u00b7 CPA Australia warns of complexity, uncertainty as reform Bill introduced\u00b7 Government\u2019s decision to legislate first, consult later is concerning\u00b7 Accountants and financial advisers will be left to advise clients on a half-built tax system\u000fAustralia\u2019s largest accounting body CPA Australia has warned the Government\u2019s tax reform legislation risks creating a more complex and uncertain system, … Continue reading “Tax reform conversation has a long way to go, CPA Australia”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-39146","post","type-post","status-publish","format-standard","hentry","category-aussie"],"_links":{"self":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/39146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=39146"}],"version-history":[{"count":1,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/39146\/revisions"}],"predecessor-version":[{"id":39147,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/posts\/39146\/revisions\/39147"}],"wp:attachment":[{"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=39146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=39146"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.16news.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=39146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}