Jenny Wong

Australia’s largest accounting body CPA Australia has warned the Government’s tax reform legislation risks creating a more complex and uncertain system, after the Treasury Laws Amendment Bill 2026 was introduced into Parliament yesterday.

While the Bill delivers the core elements of the Federal Budget’s tax package – including changes to capital gains tax (CGT), negative gearing, the Working Australians Tax Offset and the proposed standard deduction – but leaves critical components unresolved.

CPA Australia Tax Lead Jenny Wong said the most structurally significant measure for private business and family wealth had been deferred.

“This Bill is consistent with the CGT and negative gearing changes announced in the Budget, however the proposed minimum tax on discretionary trusts – arguably the most consequential reform for private business owners – has been split into a separate Bill, leaving a major gap in the system,” Ms Wong said.

Ms Wong said the Government’s decision to introduce sweeping reforms before completing consultation was deeply concerning.

“We would encourage the Government to consult first and legislate later. Introducing significant tax changes into Parliament before properly engaging with affected stakeholders is not how tax reform should be done,” Ms Wong added.

Ms Wong said consultation is still ongoing on critical technical issues, including the treatment of capital gains for small and start-up businesses, interactions with managed investment trusts and tax consolidation.

“Despite these issues still being worked through with additional concerns raised by stakeholders, the legislation has been introduced. This leaves small businesses, investors and everyday Australians with material uncertainty about how these changes will apply to them,” Ms Wong said.

CPA Australia warned that implementing the changes in stages risks undermining investment confidence.

“We acknowledge this is the first tranche of legislation, with more to follow. But Australians cannot plan their financial futures based on half a tax system.

“Implementing reform in tranches creates a two-tier system – where some Australians know where they stand and others do not. That uncertainty has real consequences for investment decisions being made right now.”

Ms Wong rejected comparisons with past reforms such as the GST.

“The GST was the product of years of consultation, negotiation and public debate. This is fundamentally different – a Budget-night announcement followed by staged legislation, with key elements still unresolved,” Ms Wong added.

CPA Australia said the immediate impact of the negative gearing changes highlights the practical challenges of the legislation.

“Negative gearing was wound back on Budget night for investors buying established homes – but the Government hasn’t shared what counts as a ‘new residential dwelling.’ That definition will be written by the Minister, after the Bill passes. This creates avoidable uncertainty at a time when Australians are making significant, long-term financial decisions.”

Ms Wong said the reforms contradict the Government’s stated objective of simplifying the tax system.

“The Government has committed to making tax time simpler, but this package does the opposite,” she said.

“It introduces a new tax offset, a new instant deduction, a new inflation-based CGT framework, a minimum tax rate and revised negative gearing rules, each with different start dates, transitional arrangements and carve-outs.

“That is not simplification – it is layering new complexity onto an already complex tax system.”

Ms Wong said multiple start dates, grandfathering provisions and exemptions will make the tax package arguably one of the most complex in recent memory.

“Australians will need to navigate overlapping rules depending on when assets were acquired, how income is earned and how structures are set up,” Ms Wong said.

“Accountants and financial advisers will be left guiding clients through a system that is still being built, with further changes flagged but not yet legislated.”

CPA Australia is encouraging the Government to reconsider its approach and work more closely with industry.

“We urge the Government to work with us and other stakeholders to get this right. Tax changes of this scale deserve genuine engagement, proper consultation and a complete legislative package that gives Australian and the market the certainty they need. We look forward to consulting with the Government on the next stage of CGT changes.”

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Keddie Waller

Australians’ access to quality and affordable financial advice is under threat as the accounting profession feels the squeeze from regulatory burden, according to a report from CPA Australia.

The pressure on accountants to have multiple licences and fulfil countless hours in education is pushing costs to clients up and driving accountants out of the profession.

The Regulatory Burden Report, conducted by Core Data, shows of the one in four accountants who offer financial planning advice, more than a third (34.6%) are considering reducing the variety of services they offer, and a further 12.5 per cent are considering ceasing to offer financial planning advice due to regulatory burden.

CPA Australia is calling on the Government to streamline the existing regulatory framework to create clearer and appropriate regulation. Recommendations outlined in the report include the introduction of strategic financial planning advice as separate to product advice in order to tackle the growing advice gap. The Report also identifies consolidating Continuing Professional Development (CPD) requirements as a means to eliminate overlapping training requirements.

At present, 79 per cent of accounting firms spend more time each week attending to compliance than they did five years ago and 61 per cent spend more time than they did just a year ago.

Keddie Waller, Head of Public Practice at CPA Australia said, “Australians’ demand for financial planning services is strong but the number of financial advisers available to meet demand is declining due to pressure on accountants from excessive regulation.

“Regulation of the financial services industry plays an important role in protecting consumers, however we need to ensure all pieces of regulation are necessary and effective in servicing the public without hindering affordable access.

“The accounting profession and the public seeking access to accountants are facing a real crisis. As accountants depart the industry, they are not being replaced by new entrants at the same rate, and it leaves less advisers with experience to mentor new entrants requiring supervised experience as part of their qualifications.

According to the Regulatory Burden Report, accountants are trusted and preferred for financial advice if they have the necessary licences or registrations, however tax agents are frustrated by the limited scope with which they are allowed to operate and feel their client relationships are being tested when they are unable to advise on a simple financial matter.

Waller added, “This is being felt by consumers, with more than half of respondents saying they would not see a specialist if they had unmet personal advice needs because they do not want to incur additional costs. Over a third said they would do further research themselves if their accountant could not service their needs.”

Read the report.

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