On Thursday, Parliament’s House of Representatives passed an amendment to the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026. This amendment extends the 50% discount on the new capital gains tax for renewable energy projects out to 2040, providing much-needed certainty for investors. This change is in addition to the removal of provisions that were in the April draft bill that could have applied CGT retrospectively on transactions since 2006. IGCC, the Clean Energy Investor Group and a supportive coalition has been leading advocacy across the Parliament on both issues, reflecting feedback raised consistently by investors since this policy was first put out publicly by the Treasurer in 2024.
Why it matters for members, the transition, and the broader economy
We expect that the improvements to the bill will result in significantly more capital invested into renewables in Australia than would have been the case had the laws passed as originally drafted.
Approximately 70% of investment in Australian renewables comes from international capital, primarily through other nations’ pension funds and large global asset managers. Those investors are well positioned to absorb development risk that many Australian investors, including superannuation funds, cannot appropriately take on. A longer transition period helps keep that capital available through the decade in which much of Australia’s ageing coal generation is expected to withdraw. It also sustains a pipeline of assets that, once operational, offer the risk and return profiles Australian funds seek.
What changed, and when
Extending CGT liability to transactions of renewable energy assets was first announced in the 2024 Federal Budget. The April 2026 exposure draft would have seen any non-resident investors liable for CGT on any renewable energy asset transactions since 2006. The Bill introduced to Parliament in July did not include that retrospectivity provision. The amendment introduced today extends the renewables transition period from four years to approximately 14, with a new end date of 2040, replacing an end date of 1 July 2030.
Avoided Risk to Australian Competitiveness
Under the original four-year window, Australia would likely have compared poorly against Canada, the United Kingdom, the United States, Germany, and the Netherlands as a destination for greenfield renewables capital. The extended transition period substantially closes that gap.
IGCC’s role
We engaged on this issue from Treasury’s consultation in late 2025 onwards, working with partners including the Clean Energy Investor Group (CEIG). IGCC members provided their perspectives, and IGCC and CEIG commissioned modelling of the potential negative impact of the proposed tax settings. This evidence was the basis for formal submissions to Treasury, and direct briefings to Treasury, ministerial offices, and other policymakers across the political spectrum. We amplified this campaign through targeted media briefings and releases, which were picked up by influential publications.
We made a consistent case throughout: adjusting the legislation would have positive effects across the economy, keeping capital flowing into new energy supply, supporting GDP growth, tax receipts, and lowering energy costs and emissions. This legislation risked harming Australia’s competitiveness in global capital markets. Our sustained advocacy has ultimately been successful.
We thank the government and the Greens in particular for their receptiveness to investors’ perspectives.
What’s next.
The legislation still needs to pass the Senate and receive royal assent before taking effect. It is unlikely to pass the Senate today, which means it is more likely to pass in the next sitting and take effect on 1 December 2026.
Investors, service providers and potential partners can find out more about how joining IGCC’s network can help you achieve your objectives by contacting us at secretariat@igcc.org.au