AFIA Submission to Economics Committee Inquiry into Tax Reform Legislation

9 June 2026, AFIA has lodged a submission to the Senate Economics Legislation Committee on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, focusing on the proposed changes to the capital gains tax (CGT) discount and negative gearing arrangements.

AFIA’s submission sets out the transmission channels through which these reforms are likely to affect the housing and credit system, including impacts on investor demand, risk pricing, funding conditions and the allocation of credit across the economy. In particular, the submission highlights the risk that abrupt changes to investor tax settings could alter portfolio composition and lending flows in ways that reduce market liquidity, increase funding spreads, and constrain the availability of finance—particularly for housing and small business sectors that are closely linked through balance sheet and collateral channels.

AFIA strongly emphasises the need for a stable and predictable policy framework underpinning credit markets. The submission cautions that without careful design, transition arrangements and sequencing, the proposed measures may generate unintended consequences for housing supply, rental market dynamics and broader financial stability. AFIA therefore calls for a measured, evidence-based approach to reform that takes full account of system-wide credit, funding and macroeconomic effects.

 View the submission here.