CPA Australia Endorses Tranche 3 Tax Reform Consultation

Professional accounting body CPA Australia has cautiously endorsed the Australian government's Tranche 3 tax reform consultation, which aims to reshape property and capital gains tax frameworks starting July 1, 2027. While the organization welcomed specific practical measures, such as extending the period for a dwelling to be treated as new from 12 to 24 months, it warned that the process is creating significant uncertainty for tax advisers and small businesses.

Jenny Wong, the tax lead at CPA Australia, described the changes as the most significant overhaul of property and capital gains tax in a generation. She noted that complexity and compliance costs remain the central issue for taxpayers. The organization expressed specific concern that anti-avoidance provisions within the reforms might penalize legitimate commercial activity.

To mitigate these risks, CPA Australia urged the Australian Taxation Office to provide guidance, record-keeping requirements, and calculators well before the implementation date. The organization stated that the government has rightly identified productivity and reducing red tape as national priorities, but emphasized that the reforms will ultimately be judged by whether they simplify or complicate tax obligations for Australians.