The Business Council of Australia says the passage of the Government’s Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 through Parliament today will damage investment, increase costs for millions of Australians and leave the nation less competitive at the worst possible time.
Business Council Chief Executive Bran Black said the legislation failed the same test the Business Council set out when the changes were first announced in the Budget.
“Every round of scrutiny, from the Senate inquiry to the parliamentary debate, confirmed what we said from the start. This reform does not stack up, and the process surfaced even more problems than were first identified,” Mr Black said.
“The test for any tax reform is whether it increases investment, grows the economic pie and boosts living standards. This legislation fails that test.”
“Despite a rushed consultation process, rushed Senate inquiry and rushed parliamentary debate, significant questions remain unanswered, including basic issues like how many Australians will end up paying more and how much it will cost to comply with these changes,” Mr Black said.
The Government’s own modelling shows the legislation will add at least $88 million a year in compliance costs. Businesses, accountants and industry groups who engaged throughout this process warned the real cost burden is likely to be significantly higher than Treasury’s estimate.
“These changes push up rents for three million Australians, will not lift productivity or economic growth and result in 35,000 fewer homes being built over the next decade,” Mr Black said.
“This was not the reform Australia needed. The Business Council will be watching the consequences closely and will continue to push for the tax settings Australia needs to grow the economy and lift living standards for all Australians.”