Overview
- A rushed two‑day Senate inquiry held mid‑June heard business groups unite in calling for the laws to be rejected and warned the changes will discourage investment and raise project costs.
- Leading economists broadly backed replacing the flat 50% capital gains tax discount with an inflation‑indexed concession but urged fixes to the 30% minimum rule, broader asset coverage and technical clarifications.
- Peak accounting bodies told senators the legislation is legally unclear, will increase record keeping and valuation work and will impose substantially higher compliance costs than Treasury’s $88 million per year estimate.
- Labor is negotiating limited carve‑outs for startups and some small businesses while seeking Greens support to pass the bills before the July parliamentary recess, with the Coalition opposed and final passage uncertain.
- If enacted, the reforms would take effect from July 1, 2027, and could modestly reduce housing supply even as policy makers argue they will improve fairness and boost first‑home access.