Submission: Senate Standing Committees on Economics

Re: Treasury Laws Amendment (Tax Reform No. 1) Bill 2026

Major tax reforms should be made by Parliament, not filled in later by ministerial instruments. In this submission on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, the Centre for Public Integrity warns that delegated tax powers in the Bill risk shifting significant policy decisions from Parliament to the Executive.

Key Concerns

The submission accepts that delegated legislation has a legitimate role in technical, administrative and operational matters. However, it argues that several powers in the Bill go further, allowing ministers to determine substantive elements of the tax regime, including:

• Capital gains tax concessions
• Negative gearing limits
• Exceptions to residential dwelling definitions
• Methods for calculating tax offsets

The Centre’s key concern is that these powers could materially alter who benefits from concessions, exemptions, and offsets without the full scrutiny, debate, and amendment processes that apply to primary legislation. While parliamentary disallowance is an important safeguard, it is often retrospective and may not fully remedy decisions made while instruments are already in force.

Recommendations

The submission recommends that significant policy choices affecting rights, obligations, and major tax outcomes be set out in primary legislation to ensure stronger parliamentary oversight and protect accountability in tax reform.

Download the full submission to understand why stronger parliamentary oversight is needed.