✦ Plain-English Summary

Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026

What it does

The government is making four main changes to tax law. First, it's removing a $2 minimum threshold for claiming tax deductions on charitable donations — so you can now claim deductions for donations of any amount, no matter how small. Second, it's updating how the Tax Office administers the tax system to modernise outdated processes. Third, it's fixing various minor errors and inconsistencies in existing tax laws. Fourth, it's blocking companies in the tobacco and gambling industries from claiming the Research and Development Tax Incentive (a credit that normally rewards businesses for investing in new products and innovation).

Why it matters

The donation change makes it easier for regular people to get tax benefits from charitable giving, even if they're donating small amounts. The ban on R&D tax credits for tobacco and gambling companies signals a policy shift — the government is saying it won't subsidise innovation in industries it considers harmful.

Key details

• Donation deductions: The $2 minimum is gone, effective from the first quarter (Jan, Apr, Jul, or Oct) after the bill passes. This applies to individuals claiming deductions on their tax returns.
• Tobacco and gambling exclusion: Companies in these sectors lose access to R&D tax incentives going forward, though the law includes transition provisions for work already underway.
• Timing: Most changes take effect from the next quarter start-date after Royal Assent; the minor fixes take effect the day after the bill becomes law.

Committee Referrals

Senate Economics Legislation Committee

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