On 28 May 2026, the Commonwealth Government introduced the following two (2) tax reform bills into the House of Representatives:
- the Income Tax Rates Amendment (Tax Reform No 1) Bill 2026 (Cth) (Minimum GCT Bill); and
- the Treasury Laws Amendment (Tax Reform No 1) Bill 2026 (Cth) (CGT Adjustments Bill).
These two (2) Bills have been tabled as part of the Albanese Government’s tax reform package announced in the 2026–27 Federal Budget on 12 May 2026.
Minimum CGT Bill
The Minimum CGT Bill amends the Income Tax Rates Act 1986 (Cth) by adding new section 12AA which has the effect of ensuring that capital gains are taxed according to a formula, which the Explanatory Memorandum says is a minimum of thirty percent (30%).
CGT Adjustments Bill
The sixty-nine (69) page CGT Adjustments Bill introduces amendments to various tax acts to give effect to the Albanese Government’s plan to:
- remove the fifty percent (50%) CGT discount;
- impose a minimum thirty percent (30%) tax on capital gains;
- limit negative gearing to new builds of residential property; and
- implement the “Working Australians tax offset” of a minimum $250 tax offset for “Working Australians”.
The CGT Adjustments Bill amends many Acts – read the full Bill here.
Notably there is no references in the Bills to the mooted changes to taxing of dividends at a minimum of thirty percent (30%) in the hands of trustees.
Time will tell if a Bill is introduced to implement this proposed change.
More information
View the list of current Bills before the House of representatives here: https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_before_Parliament and search by date.
These two (2) Bills are not law yet and are still to be passed by the House of Representatives and the Senate.
Dundas Lawyers will watch this space carefully and post updates as soon as they become available.
Links and further references
Legislation
Income Tax Rates Amendment (Tax Reform No 1) Bill 2026 (Cth)
Treasury Laws Amendment (Tax Reform No 1) Bill 2026 (Cth)
Income Tax Rates Act 1986 (Cth)
Further information
If you need advice on how these proposed tax reforms may affect your business, investments, trust arrangements or future tax planning, contact us for a confidential and obligation‑free discussion.
Malcolm Burrows B.Bus.,MBA.,LL.B.,LL.M.,MQLS.
Legal Practice Director
T: +61 7 3221 0013 (preferred)
M: +61 419 726 535
E: mburrows@dundaslawyers.com.au
Disclaimer
This article contains general commentary only. You should not rely on the commentary as legal advice. Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances
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