AdviserVoiceJenny Wong Archives - AdviserVoice https://www.adviservoice.com.au/tag/jenny-wong/ Financial planner information & financial planner education/CPD - AdviserVoice Thu, 30 Jul 2026 21:30:31 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 Government pushing major tax changes with a rushed and incomplete Bill, CPA Australia warns https://www.adviservoice.com.au/2026/06/government-pushing-major-tax-changes-with-a-rushed-and-incomplete-bill-cpa-australia-warns/ https://www.adviservoice.com.au/2026/06/government-pushing-major-tax-changes-with-a-rushed-and-incomplete-bill-cpa-australia-warns/#respond Sun, 14 Jun 2026 21:15:33 +0000 https://www.adviservoice.com.au/?p=111915

Jenny Wong

Australia’s largest accounting body, CPA Australia has recommended that the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 be substantially improved or deferred, warning the government is attempting to push through the most significant tax changes in a generation on the back of an inadequate and rushed consultation process.

CPA Australia Tax Lead Jenny Wong said while the organisation supports well-designed tax reform, the current Bill is technically deficient, falling short of the standard required for legislation of this scale.

“This is not a case of resistance to reform – it is a case of reform that could be done better,” Ms Wong said.

“The Bill has been introduced without an exposure draft, without a consultation paper, and without formal stakeholder engagement and the cracks are showing.”

Stakeholders were given just 11 days to respond to legislation that will affect millions of Australians, while the Committee has only 24 days to report.

“That timeframe is simply not fit for purpose for reforms of this magnitude and complexity. This rushed process has produced avoidable errors that could have been caught through proper consultation,” Ms Wong said.

CPA Australia’s submission[1] to the Senate Economics Legislation Committee includes new estimates showing the reforms will impose substantial costs on Australian taxpayers.

Ongoing annual compliance costs are estimated to be between $295 million and $542 million, while one-off transitional costs, driven largely by the requirement for millions of Australians to establish market values for CGT assets from 30 June 2027, are expected to range from $675 million to $825 million at a minimum.

“The compliance burden is real, it is sizeable, and it will fall disproportionately on everyday Australians rather than the high-wealth investors that this policy was intended to target,” Ms Wong said.

CPA Australia has also warned the Bill fails to adequately account for the realities faced by small and medium business owners and start-up founders.

Under the proposed model, replacing the 50 per cent CGT discount with CPI indexation produces materially worse outcomes for business owners who have built value from a low or nominal cost base.

“A plumber who incorporated for a dollar, a tech founder whose shares cost one cent, an accountant who bought into a practice for nominal consideration – these are not the policy’s intended targets, yet they will bear its full force without a carve-out,” Ms Wong said.

To address this, CPA Australia is proposing a three-tier framework, including retaining the 50 per cent CGT discount for active business assets where aggregated turnover does not exceed $20 million.

“This is a practical, targeted fix that protects genuine small business investment without undermining the broader policy intent.”

CPA Australia has also raised serious concerns about the use of ministerial instruments to define critical aspects of the reform – none of which have been released. The Bill relies on nine separate ministerial instruments to determine who is taxed, at what rate, on which assets, and under what conditions – including the definition of ‘new residential dwelling’ (eligible for CGT concessions) and an alternative method to apportion capital gains pre and post 30 June 2027.

“Parliament is being asked to pass a reform where the key policy settings do not yet exist in a visible or testable form,” Ms Wong said.

“That is not an acceptable way to legislate on matters of this significance.”

CPA Australia has called for these instruments to be subject to affirmative resolution by both Houses of Parliament before taking effect.

CPA Australia is calling on the Committee to recommend that:

  • The Bill does not proceed until material gaps and errors are addressed and a revised, disaggregated compliance cost estimate is published
  • The draft apportionment methodology instrument be released for public consultation by 1 October 2026 to provide valuation certainty ahead of 30 June 2027
  • A small business and start-up carve-out retaining the 50 per cent CGT discount for active business assets with turnover up to $20 million be introduced in second-tranche legislation
  • Treasury publish a distributional analysis of the minimum tax before the Bill passes
  • The interaction of the CGT and other tax issues are stress tested and consulted on before introduction
  • A statutory independent review commences no later than 1 July 2029.

Ms Wong said the issues identified are not insurmountable but require time and proper consultation to resolve.

“We are not here to block reform. We are here to make it work,” she said.

“These are fixable problems, but they need time and proper consultation to get the details right.”

——–

Notes:
[1] CPA Australia’s submission
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Jenny Wong

Australia’s largest accounting body, CPA Australia has recommended that the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 be substantially improved or deferred, warning the government is attempting to push through the most significant tax changes in a generation on the back of an inadequate and rushed consultation process.

CPA Australia Tax Lead Jenny Wong said while the organisation supports well-designed tax reform, the current Bill is technically deficient, falling short of the standard required for legislation of this scale.

“This is not a case of resistance to reform – it is a case of reform that could be done better,” Ms Wong said.

“The Bill has been introduced without an exposure draft, without a consultation paper, and without formal stakeholder engagement and the cracks are showing.”

Stakeholders were given just 11 days to respond to legislation that will affect millions of Australians, while the Committee has only 24 days to report.

“That timeframe is simply not fit for purpose for reforms of this magnitude and complexity. This rushed process has produced avoidable errors that could have been caught through proper consultation,” Ms Wong said.

CPA Australia’s submission[1] to the Senate Economics Legislation Committee includes new estimates showing the reforms will impose substantial costs on Australian taxpayers.

Ongoing annual compliance costs are estimated to be between $295 million and $542 million, while one-off transitional costs, driven largely by the requirement for millions of Australians to establish market values for CGT assets from 30 June 2027, are expected to range from $675 million to $825 million at a minimum.

“The compliance burden is real, it is sizeable, and it will fall disproportionately on everyday Australians rather than the high-wealth investors that this policy was intended to target,” Ms Wong said.

CPA Australia has also warned the Bill fails to adequately account for the realities faced by small and medium business owners and start-up founders.

Under the proposed model, replacing the 50 per cent CGT discount with CPI indexation produces materially worse outcomes for business owners who have built value from a low or nominal cost base.

“A plumber who incorporated for a dollar, a tech founder whose shares cost one cent, an accountant who bought into a practice for nominal consideration – these are not the policy’s intended targets, yet they will bear its full force without a carve-out,” Ms Wong said.

To address this, CPA Australia is proposing a three-tier framework, including retaining the 50 per cent CGT discount for active business assets where aggregated turnover does not exceed $20 million.

“This is a practical, targeted fix that protects genuine small business investment without undermining the broader policy intent.”

CPA Australia has also raised serious concerns about the use of ministerial instruments to define critical aspects of the reform – none of which have been released. The Bill relies on nine separate ministerial instruments to determine who is taxed, at what rate, on which assets, and under what conditions – including the definition of ‘new residential dwelling’ (eligible for CGT concessions) and an alternative method to apportion capital gains pre and post 30 June 2027.

“Parliament is being asked to pass a reform where the key policy settings do not yet exist in a visible or testable form,” Ms Wong said.

“That is not an acceptable way to legislate on matters of this significance.”

CPA Australia has called for these instruments to be subject to affirmative resolution by both Houses of Parliament before taking effect.

CPA Australia is calling on the Committee to recommend that:

  • The Bill does not proceed until material gaps and errors are addressed and a revised, disaggregated compliance cost estimate is published
  • The draft apportionment methodology instrument be released for public consultation by 1 October 2026 to provide valuation certainty ahead of 30 June 2027
  • A small business and start-up carve-out retaining the 50 per cent CGT discount for active business assets with turnover up to $20 million be introduced in second-tranche legislation
  • Treasury publish a distributional analysis of the minimum tax before the Bill passes
  • The interaction of the CGT and other tax issues are stress tested and consulted on before introduction
  • A statutory independent review commences no later than 1 July 2029.

Ms Wong said the issues identified are not insurmountable but require time and proper consultation to resolve.

“We are not here to block reform. We are here to make it work,” she said.

“These are fixable problems, but they need time and proper consultation to get the details right.”

——–

Notes:
[1] CPA Australia’s submission

The post Government pushing major tax changes with a rushed and incomplete Bill, CPA Australia warns appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2026/06/government-pushing-major-tax-changes-with-a-rushed-and-incomplete-bill-cpa-australia-warns/feed/ 0 Tax reform conversation has a long way to go, CPA Australia https://www.adviservoice.com.au/2026/05/tax-reform-conversation-has-a-long-way-to-go-cpa-australia/ https://www.adviservoice.com.au/2026/05/tax-reform-conversation-has-a-long-way-to-go-cpa-australia/#respond Thu, 28 May 2026 21:05:20 +0000 https://www.adviservoice.com.au/?p=111629

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.”

]]>

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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