Second tranche of CGT legislation to address additional concerns, says finance minister

"We've got some other amendments that we will be moving to deal with those [changes] that we're already determined but we expect that there will be issues that we will need to work through and bring back to this Parliament," said Gallagher.

"There will be complex interactions of tax law that will require amendment through a second tranche of legislation."

Gallagher said the second tranche of legislation would also address concerns raised Senator David Pocock about situations involving shared ownership of an asset.

Senator Pocock had called for the government to provide grandfathering for CGT and negative gearing concessions in the case of death or divorce.

Labor provided Pocock with assurances that it would give effect to grandfathering for these types of situations in the next tranche of legislation.

Gallagher said there were still a number of complex considerations with the reforms including ensuring the right treatment for new build properties, ensuring consistency with existing CGT rollovers that apply to property transfers, and ensuring that changes don't introduce unforeseen integrity risks.

"We have been clear on a number of occasions that the complex details that arise through these reforms [will need] to be worked through following consultation," she said.

Labor passed the bills to implement the changes to CGT and negative gearing on Thursday, following a deal made with the Greens earlier in the week.

The legislation replaces the 50 per cent CGT discount for individuals, trusts and partnerships with cost base indexation and introduces a minimum 30 per cent tax on capital gains with certain exemptions.

The changes to CGT apply to all capital gains accruing on and after 1 July 2027, including gains accruing on pre-CGT assets. The CGT discount will still apply for new housing, and the existing CGT concessions for small businesses will also be retained.

The legislation also introduces the $1,000 standard deduction for work-related expenses for individuals who are Australian tax residents and earn assessable labour income.

Treasurer Jim Chalmers said the passage of the tax reform package was a "victory for workers, first home buyers and future generations".

"Today we have locked in two more rounds of income tax cuts for millions of Australians, a fair go for first home buyers, and a fairer tax system that better aligns the treatment of labour and asset income," he said.

"The bill includes tax cuts in the form of the Working Australians Tax Offset and the instant tax deduction for workers."

The bill also reforms future negative gearing so that it only applies to new builds from 1 July 2027, but contains grandfathering provisions for those who currently own an investment property.

"This is all about encouraging investment in new housing supply while also respecting previous investment decisions people have made," Chalmers said.

"The Bill fixes a big distortion that was created in our economy over 25 years ago by returning the capital gains tax to its original intent from 1 July 2027."