13/05/2026
Federal Government Budget alert!
Last night the 2026–27 Federal Budget was announced, introducing a number of measures relevant to individuals, businesses, and investors. We have included an initial summary below:
Key business and tax measures include:
• Permanent $20,000 instant asset write-off for small businesses (this had been temporary)
• Dynamic PAYG instalments calculation ability, using real-time business software data
• A 25% FBT discount replacing the former full exemption for electric vehicles
• Loss carry-back extended for eligible businesses
Personal tax and investment changes:
• Proposed CGT changes, replacing the current 50% CGT discount with an inflation-based discount and a minimum 30% tax on gains
• From 1st July 2027, negative gearing limited to new builds only. Existing investment properties held at 7:30pm (AEST) 12th May 2026 won't be affected
• Minimum 30% tax rate for discretionary trusts, from 1st July 2028
• Income tax cuts to continue, announced in last year's budget - from 1st July 2026 and 1st July 2027
• A $1,000 instant tax deduction and an annual tax offset of up to $250 for workers
We are currently reviewing the detail behind these announcements and will provide further targeted guidance as legislation and implementation timelines become clearer.
Please contact us if you would like to discuss how these changes may affect your circumstances.
