Income Tax Rates Amendment (Tax Reform No. 1) Act 2026 (50 of 2026)

Schedule 1   Amendments

Income Tax Rates Act 1986

1   After section 12

Insert:

12AA Rate of extra income tax on minimum tax capital gain

(1) This section sets the rate of extra income tax payable under subsection 119-10(1) of the Income Tax Assessment Act 1997 on every dollar of a taxpayer's minimum tax capital gain for a year of income.

(2) The rate is worked out using the formula:

(3) In this section:

minimum tax capital gain means the taxpayer's minimum tax capital gain, within the meaning of the Income Tax Assessment Act 1997, in whole dollars.

minimum tax gap amount means the taxpayer's minimum tax gap amount, within the meaning of the Income Tax Assessment Act 1997, in whole dollars.