Treasury Laws Amendment (Tax Reform No. 2) Act 2026 (71 of 2026)

Schedule 4   Negative gearing amendments

Income Tax Assessment Act 1997

3   After subsection 26-155(3)

Insert:

(3AA) For the purposes of paragraph (2)(a), in determining when an *ownership interest in a *residential dwelling was last *acquired, disregard the effect of subsection 118-192(2).

(3AB) For the purposes of paragraph (2)(b), if a *residential dwelling would cease to be a *new residential dwelling in relation to you because of the operation of subsection 118-192(2), disregard the effect of that subsection.