Capital Gains Tax and Negative Gearing – draft tranche 2 legislation released

The draft legislation represents the first set of amendments to the enacted legislation, as highlighted by Jennifer Kwok, Ethan Zuo, Julian Humphrey and Amanda Maguire.

The Federal Government, on 4 August 2026, released draft legislation which proposes to amend Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (the Act), the recently enacted legislation which makes changes to the capital gains tax (CGT) and negative gearing rules from 1 July 2027. The draft legislation represents the first set of amendments to the enacted legislation, and includes the following key proposals: CGT apportioning method; definition of a 'new residential dwelling' and exe...

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Authors: Jennifer Kwok, Ethan Zuo,

Published Date: 13 August 2026