COTA Australia’s submission to the Senate Economics Legislation Committee inquiry into the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and related legislation identifies potential inequities for some older people arising from proposed changes to capital gains tax and negative gearing.
COTA Australia makes five key recommendations. First, we call for public communication that promotes intergenerational fairness without reinforcing age-based stereotypes. Second, retirement tax reforms must maintain predictability and stability, reflecting the long-term nature of retirement planning. Third, we strongly support retaining the grandfathering and transition protections for those already in or approaching retirement included in the bill.
Fourth, COTA Australia urges close monitoring of the proposed 30 per cent minimum capital gains tax to ensure it does not disproportionately affect low-income self-funded retirees with limited cash flow. Finally, we recommend targeted transition measures for retirees holding assets outside superannuation to avoid inequitable outcomes compared with those whose retirement savings are held within the superannuation system.
Overall, COTA Australia supports the inquiry’s focus on improving tax fairness while emphasising the need to balance intergenerational equity with retirement security, confidence and practical transition arrangements.