Income Tax Point-in-Time Service Updates

The Income Tax Point-in-Time Service has been updated to include the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Cth) (Act No 49 of 2026),  the Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 (Cth) (Act No 50 of 2026), and the Income Tax Assessment (1997 Act) Amendment (Income Tax Exemption) Regulations 2026 (Cth).

Act 49 of 2026

This Act aims to provide permanent cost of living relief, encourage new housing supply and make tax time quicker and easier for individual taxpayers. The Act includes amendments to: 

• replace the 50 per cent capital gains tax (CGT) discount for individuals, trusts and partnerships with cost base indexation to ensure only real gains are subject to taxation;
• introduce a 30 per cent minimum tax on capital gains, with an exemption for certain income support recipients, to ensure gains are subject to a tax rate closer to the tax rate individuals faced during their working life and commensurate with the tax rate paid by most workers; 
• the Income Tax Assessment Act 1997 (ITAA 1997) to require that a person’s net rental losses on a residential dwelling used or held as residential accommodation are a quarantined amount;
• introduce the working Australians tax offset, a non-refundable tax offset that provides targeted tax relief to Australian resident individuals who earn labour income; and
• the ITAA 1997 to introduce a $1,000 standard deduction for work-related expenses for individuals who are Australian tax residents who derive assessable labour income, so that eligible taxpayers can rely on a simple deduction instead of claiming their work-related expenses.

Act 50 of 2026

This Act amends the Income Tax Rates Act 1986 (Cth) to insert a new provision concerning the rate of extra income tax on minimum tax capital gain.

Income Tax Assessment (1997 Act) Amendment (Income Tax Exemption) Regulations 2026

These purpose of these regulations is to provide a time-limited income tax exemption for the Asian Football Confederation (AFC), the entity that was responsible for staging the AFC Women’s Asian Cup 2026 in Australia in March 2026. The Regulations list the AFC as a prescribed entity in the Income Tax Assessment (1997 Act) Regulations 2021 (Cth) in accordance with the Income Tax Assessment Act 1997 (the Act) for the purposes of table item 9.1 of section 50 45 and paragraph 50-70(1)(c) of the Act.

These amendments have been updated in the Point-in-Time Income Tax Service current to 29 June 2026 (NB: subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.