‘Disgraceful speed run’: Div 296 consultation period come and gone in a flash

In its submission, the institute noted it welcomed the treasurer’s announcement on 13 October 2025 of new approaches to the proposed measure to take into account alternative solutions to address significant concerns with the original design.

Despite this, the institute said the government needed to learn from the experiences of rushed consultation periods in terms of the negative impacts they could have on the industry and broader society.

“The release of the draft Bill, Imposition Bill, and explanatory materials just before the holiday season, has meant that approximately half of the consultation period has taken place over a time when most businesses were completely shut and many professionals are still away and unavailable,” The Tax Institute said.

“This has not left adequate time for stakeholders to comprehensively respond and raises questions about the overall effectiveness of the consultation process.”

The institute noted that the short consultation periods seemed to be an ongoing pattern, as it had earlier raised this issue when the Better Targeted Concessions Consultation Paper, released in 2023, was open for consultation for two weeks, as well as the earlier draft bill in 2023, which was also open for consultation for two weeks.

“Rushed consultation undermines confidence in the process and increases the risk of poor policy outcomes and unintended consequences, potentially compromising the integrity of the tax system and adversely affecting the broader community,” the institute said.

“The previous Division 296 proposal was clear evidence of this. We trust that collectively we can learn from these experiences and work towards a better approach to consultation and the design of new measures.”

Tony Greco of the Institute of Public Accountants (IPA) also shared similar thoughts on the bill's consultation period, and said it had been “hastily put together and revised”, which contributed to industry professionals' qualms with the proposals.

Nitin Saby, managing director of Saby + Partners, said this rushed consultation period was a “classic stunt” often pulled by the Treasury.

“Treasury just pulled a classic stunt. Drop it late, rush it fast. On 19 December 2025, Treasury released the draft Div 296 legislation for feedback, with responses due by 16 January 2026,” he said.

“That’s not consultation, that’s a speed run and frankly disgraceful. Mid-December is when offices shut down, people take leave, teams run on skeleton staff, and decision makers disappear. This timing isn’t neutral, it’s tactical.”