Treasury recently released exposure draft legislation containing further amendments to the Government’s capital gains tax and negative gearing reforms. These reforms introduced a fundamentally new framework for taxing capital gains, including complex transitional rules for assets held before 1 July 2027. The exposure draft seeks to address a range of technical, integrity and implementation issues arising from the new regime.
Pitcher Partners has submitted a response to Treasury highlighting a range of technical and practical concerns with the proposed measures. We continue to hold concerns regarding the complexity associated with the deemed sale and reacquisition framework that underpins the reforms. In particular, the framework gives rise to a broad range of interaction issues with existing provisions throughout the tax law, many of which remain unresolved. Our submission recommends a number of targeted amendments and simplification measures aimed at reducing compliance costs, improving certainty and enhancing the administrability of the regime for middle market taxpayers. Pitcher Partners will continue engaging with Treasury throughout the coming months in respect of further anticipated legislative changes.
