TITLE: Australia Tax Update: 29 August 2026 – CGT, TPAR, Super, and More
Australia’s tax landscape is moving quickly. Today’s main developments affect capital gains tax, contractor reporting, superannuation, discretionary trusts, alcohol manufacturers and crypto holders.
If you operate an Australian business in Sydney, Melbourne, Brisbane, Perth or Canberra, use this update to identify the records and deadlines that need attention.
Important: Some measures discussed below are proposed reforms or draft guidance. Check the latest legislation and ATO material before taking action.
Key Australia tax updates for 29 August 2026
- Economists have identified a potential inflation problem in the proposed CGT regime beginning 1 July 2027.
- The 28 August TPAR deadline has passed, and new pre-fill data is now becoming available for eligible individual contractors.
- Superannuation is relatively more tax-effective because the proposed CGT changes outside super do not remove the existing super fund CGT discount.
- Treasury has released draft legislation on CGT and negative gearing and consulted on a proposed 30% minimum tax for discretionary trusts.
- The ATO will begin targeted alcohol excise pre-licensing reviews from September.
- ATO draft ruling TR 2026/D1 on crypto airdrops remains open for comments until 2 October 2026.
Review the CGT inflation flaw before 1 July 2027
The proposed CGT reforms are designed to replace the current 50% CGT discount with cost-base indexation. Broadly, the new system would adjust an asset’s cost base for inflation so that tax applies to the real gain rather than the purely inflationary increase.
The government’s policy objective is to tax real capital gains. However, research presented by Professor James Giesecke of Victoria University at the Melbourne Economic Forum has raised concerns about the treatment of losses.
The research argues that the proposed regime may index gains for inflation without providing equivalent recognition for real losses. In practical terms, an investor may have a real loss on one asset but only a nominal loss may be recognised for tax purposes. That loss may not fully offset a real gain elsewhere in a diversified portfolio.
The concern is particularly relevant to Australian investors holding shares, property and other long-term assets. The Australian Financial Review reported on 28 August 2026 that effective tax rates on diversified portfolios could reach approximately 55% to 80% in some modelled situations.
These figures are not a standard tax rate for every Australian taxpayer. They reflect modelling of the interaction between inflation, gains, losses and the proposed rules. Your result will depend on the asset, holding period, income level and timing of disposal.
What should you do now?
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Separate nominal and real investment performance.
This will help you understand whether a reported gain reflects genuine growth or inflation. -
Maintain asset-level records.
Keep purchase documents, improvement costs, transaction fees, ownership dates and valuation evidence. Complete records will make future CGT calculations more reliable. -
Track unrealised gains and losses.
A portfolio report that shows only total performance may not reveal how the proposed loss rules could affect you. -
Monitor the legislation.
The Treasury CGT and negative gearing consultation material and the ATO’s tax reform guidance explain the proposed framework.
Do not assume that selling before 1 July 2027 will automatically produce a better result. The reforms include transitional rules, and the correct approach depends on your facts and the final law.
Use the new TPAR pre-fill data after 28 August
The TPAR deadline for the 2025–26 financial year passed on 28 August 2026. From now, the ATO expects most TPAR information to flow into the tax returns of eligible individual contractors and sole traders.
This is a significant change for tax time 2026. TPAR data will be pre-filled for individuals who provide services in covered industries, including:
- Building and construction.
- Cleaning.
- Courier and road freight.
- Security, investigation and surveillance.
- Information technology services.
- Certain services provided to government entities.
The ATO estimates that approximately $21 billion in contractor payments will be included in the new pre-fill system for around 700,000 sole traders and individuals in business.
The pre-fill may show the payer’s name and ABN, gross payments, GST amounts and tax withheld. However, it does not remove your responsibility to check the information.
Complete this contractor tax checklist
- Wait until the data is available before lodging, where practical. This reduces the risk of missing payments and later amendments.
- Compare the pre-fill with your bookkeeping system. Pre-filled amounts may not align with your accounting basis or invoicing records.
- Check GST treatment. Gross TPAR amounts include GST where GST was charged.
- Review payment timing. TPAR information generally reflects amounts actually paid during the year.
- Include other income. Pre-fill does not capture every payment or every type of assessable income.
- Keep supporting records. This protects you if the ATO queries a discrepancy.
The pre-fill applies to eligible individuals. It does not replace the reporting and record-keeping obligations of companies, trusts or partnerships.
Read the ATO’s 2026 TPAR pre-fill guidance before lodging.
Understand why superannuation is relatively more tax-effective
Superannuation has become relatively more attractive for long-term investing following the May 2026 Budget proposals.
The proposed CGT reforms outside super would remove the general 50% CGT discount for individuals, trusts and partnerships and replace it with inflation-based cost indexation. Superannuation funds are not expected to move into this new regime.
Under the existing rules:
- Accumulation-phase earnings in a complying super fund are generally taxed at 15%.
- Long-term capital gains generally receive a one-third CGT discount, producing an effective tax rate of approximately 10% inside the fund.
- Investment earnings in the pension phase may be tax-free, subject to the applicable rules and limits.
This means super has become more tax-effective relative to investing in your own name, rather than receiving a new tax concession.
You should still consider contribution limits, access restrictions, cash-flow needs and the proposed Division 296 tax for very large super balances. The
