Economists Offer Cautious Backing for Labor’s Tax Overhaul

‘A fixed discount does not adequately take account of what is effectively out there in the world,’ said Michael Brennan, CEO of the e61 Institute.

Australian Treasurer Jim Chalmers addresses the National Press Club in The Great Hall in Canberra, Australia on May 13, 2026. Hilary Wardhaugh/Getty Images

Labor’s tax overhaul of wealth creation vehicles has won cautious backing from some economists during a Senate committee examining the new laws.

The Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, which has passed the lower house, is being scrutinised by the Senate Economics Legislation Committee.