20 August 2026
The Federal Government’s adjustments to its bill on Capital Gains Tax (CGT) on foreign investment in renewables have been welcomed by the country’s largest investors and developers.
The amendment extends the 50 per cent discount on CGT paid by global investors in renewable energy projects from 2030 to 2040, ensuring the tax transition aligns more closely with the clean energy transition.
Independent modelling from economics consultancy Mandala Partners, commissioned by the Investor Group on Climate Change and the Clean Energy Investor Group and shared with the Commonwealth Treasury, shows an extension of the transition period by 10 years will significantly reduce the new tax’s chilling effect on new renewables investment and improve the likelihood of reaching Australia’s renewable energy and emissions targets.
While there is still room for further improvement, through the addition of grandfathering for existing renewable energy investments, the amendments are a welcome compromise.
Quotes attributable to Frankie Muskovic, Executive Director, Policy for the Investor Group on Climate Change:
“This change avoids what would have been an unforced error in cruelling desperately needed investment – to drive down pressure on energy prices and help grow new industries supported by cheap clean energy.
“The Treasurer’s welcome move to better align the tax regime with Australia’s energy transition removes an element of uncertainty for investors at a time we need to supercharge investment into new clean energy supply across the board over the next fifteen years at least.
“We welcome the Greens’ support for this amendment and acknowledge their commitment to new clean energy investment as critical to Australia’s economic growth and productivity.”
Quotes attributable to Richie Merzian, CEO for the Clean Energy Investor Group:
“Australia’s energy transition is competing for global capital with other countries, and the commitment from the Treasurer today to extend the transition will ensure Australia remains a competitive investment destination.
“The Greens have shown a steadfast commitment to supporting renewable energy and have helped ensure the transitional period for the new CGT on international investors in clean energy is in alignment.
“Over 70% of the investment into Australian clean energy comes from international sources. The compromise reached today on this Bill increases the chances that this much-needed source of capital will continue to flow into Australia and support our future economic prosperity.
“Notwithstanding the positive changes being made, we will continue to work constructively and persistently with the Government to ensure regulatory settings deliver greater equity and certainty for foreign investors relative to their domestic counterparts.”
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Media Enquiries:
Richie Merzian – Chief Executive Officer, Clean Energy Investor Group
+61 401 614 810 | media@ceig.org.au
Fergus Pitt – Director of Communications, Investor Group on Climate Change
+61 476 101 542 | Fergus.pitt@igcc.org.au
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The Investor Group on Climate Change is the leading networks for investors in Australia to understand and respond to the risks and opportunities of climate change.
Our members have more than $30 trillion under management around the world. Our Australian members invest on behalf of more than 14.8 million Australians, and millions more New Zealanders.
The Clean Energy Investor Group represents domestic and global renewable energy developers and investors, with more than 18GW of installed renewable energy capacity across 139 operating power stations and a combined portfolio value of around $41 billion.
It is an investor body, representing the unique perspective of clean energy investors to regulators, policy makers and the broader energy sector. Refer to www.ceig.org.au for list of members.
