CPA Australia has urged the government to substantially amend or defer the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, saying that it represents a major rewrite of tax rules but has been developed with limited consultation.
In a statement, CPA Australia tax lead Jenny Wong said the accounting body supports well‑designed reform but believes the Bill is technically deficient and not ready in its current form.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Wong said: “The Bill has been introduced without an exposure draft, without a consultation paper and without formal stakeholder engagement, and the cracks are showing.”
CPA Australia said stakeholders were allowed 11 days to respond to legislation that is expected to affect millions of Australians. It noted that the Senate Economics Legislation Committee has 24 days to report.
In its submission, CPA Australia estimates ongoing compliance costs of between A$295m ($208m) and A$542m each year.
It also forecasts one‑off transition costs of at least A$675m–825m. The group said much of this would come from the requirement for millions of taxpayers to establish market values for capital gains tax (CGT) assets as of 30 June 2027.
CPA Australia also warned that the Bill does not adequately reflect conditions faced by small and medium‑sized businesses (SMBs) and start‑up founders.
It said replacing the 50% CGT discount with consumer price index indexation would leave many owners worse off, particularly those who built value from assets acquired at low or nominal cost.
To address this, CPA Australia proposes a three‑tier model including retaining the 50% CGT discount for active business assets where aggregated turnover does not exceed A$20m.
The organisation also raised concerns about the Bill’s reliance on nine ministerial instruments to set key details, including who is taxed, the rate applied, asset coverage and definitions such as “new residential dwelling”, as well as an alternative method to apportion gains before and after 30 June 2027.
CPA Australia wants these instruments to require affirmative approval by both houses of parliament before taking effect.
It is asking the Committee to recommend the Bill not proceed until key gaps and errors are fixed and a revised, disaggregated compliance cost estimate is published.
The group wants the draft apportionment methodology instrument released for consultation by 1 October 2026.
It also recommends a small business and start‑up carve‑out in second‑tranche legislation to limit compliance pressures on smaller companies.
CPA Australia is urging Treasury to publish a distributional analysis of the minimum tax before the Bill passes. It also wants an independent statutory review to begin no later than 1 July 2029 to assess outcomes in practice.
