Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026

Sue Lines

I will now deal with the Committee of the Whole amendments, starting with amendments circulated by the opposition. The question is that the amendments on sheet 3909 be agreed to.

Opposition's circulated amendments

(1) Clause 2, page 2 (at the end of the table), add:

(2) Page 29 (after line 27), at the end of the Bill, add:

Schedule 7 — Retaining concessions for certain transfers

Part 1 — Retaining CGT concessions for certain transfers

Income Tax Assessment Act 1997

1 After Division 128

Insert:

Division 129 — Retaining CGT concessions in relation to CGT assets that are inherited or acquired because of relationship breakdown etc.

Guide to Division 129

129-1 What this Division is about

This Division ensures that certain CGT concessions remain available where a CGT asset is inherited or acquired because of a relationship breakdown etc.

Table of sections

Operative provisions

129-5 Retaining CGT concessions in relation to CGT assets that are inherited or acquired because of relationship breakdown etc.

Operative provisions

129-5 Retaining CGT concessions in relation to CGT assets that are inherited or acquired because of relationship breakdown etc.

(1) This section applies in relation to a *CGT asset if:

(a) you acquire an ownership interest in the CGT asset:

(i) by inheriting the CGT asset; or

(ii) because of something mentioned in subsection 126-5(1) (court orders under the Family Law Act 1975 etc.); and

(b) you would have been entitled to a concession in respect of a *capital gain (including a concession to reduce or disregard a capital gain) under this Part or Part 3-1 if the amendments made by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 had not been made.

(2) If you make a *capital gain from a *CGT event happening in relation to the *CGT asset, you can choose to apply a concession in respect of the gain that you would have been entitled to had the amendments made by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 not been made.

Part 2 — Retaining negative gearing for certain transfers

Income Tax Assessment Act 1997

2 After subsection 26-155(3A)

Insert:

Exception for residential dwellings inherited or acquired because of relationship breakdown etc.

(3B) For the purposes of subsection (1), disregard amounts you could otherwise deduct, and amounts of assessable income, to the extent those amounts relate to the using or holding of an *ownership interest in a *residential dwelling that you:

(a) inherited; or

(b) acquired because of something mentioned in subsection 126-5(1) (court orders under the Family Law Act 1975 etc.).