Minimum income tax requirements for Australian residents with capital gains
Treasury Laws Amendment (Tax Reform No. 1) Bill 2026
1st House
2nd House
Law
Links to official parliament websites
Effects of this bill
If this bill passes, it means that:
Australian residents must pay extra income tax if they have a minimum tax gap amount; the Minister can exempt some payments.
Taxpayers must reduce remaining capital gains by the discount percentage for discount capital gains.
Taxpayers can include indexation in the cost base of an asset if they owned it for at least 12 months.
Taxpayers can still get a discount of at least 50% for new residential dwellings or affordable housing after 1 July 2027.
Owners of residential property cannot deduct expenditure that exceeds the income from that property.
Taxpayers with labour income can claim a standard work-related deduction up to $1,000.
Taxpayers using assets for labour income can reduce the balancing adjustment by a fixed amount.