Mohr Solutions

13/05/2026

The 2026-27 Federal Budget has been released. We answer the question, "What is in it for me?"

The Answer is disappointingly, More Tax to Pay. This is a Seismic shift in Tax policy to raise money from individuals and business for the Government to fund their specific projects such as net zero targets and subsidizing electric vehicles onto our roads. "This is not tax reform - it's a revenue measure that shifts more of the burden onto middle Australia," says CPA Australia Tax Lead Jenny Wong. Additionally, CPA Australia are calling the budget a "tax grab" that punishes aspiration and deters investment. There are major fundamental new tax changes with many questions raised and a lot of new "Red Tape" created. We also note that the Prime Minister is on record before the last election where he promised he would not change the CGT Discount or Negative Gearing, yet here it is.

The benefits of Structuring and Tax Minimisation have just been dealt a heavy blow. Two of our top Tax Planning options have been directly targeted by the Government, now we need to change and adapt to the new environment in working out new Tax Planning Options to benefit you. The Major Changes include:

Individuals

• The 50% Discount for Capital Gains held longer than 12 months will be scrapped on all assets from 1 July 2027 and replaced with cost base indexation. Cost Base indexation is what we had back before 1999. Taking us back over 2 decades to rules that create higher Capital Gains. Exemptions include New Residential Property purchases (which has yet to be defined) and Centrelink support payment recipients such as Age Pension recipients.

• All Capital Gains to be taxed at a Minimum 30% from 1 July 2027 for all Individuals, Trusts and Partnerships.

• Pre-CGT assets purchased before September 1985 will have Capital Gains Tax applying from 1 July 2027 with cost base indexation and the Minimum 30% tax rate.

• Negative gearing will be removed for Residential Properties purchased after 1 July 2027 except for eligible New Residential Property only. Existing rental properties will continue under the current rules until sale under grandfathering rules. The purchase of any Existing Residential Property from 12 May 2026 to 30 June 2027 will be eligible for negative gearing until 1 July 2027 where afterward any rental loss will be carried forward to offset future rental income or to apply against the Capital Gain on Sale.

• The Government will introduce a Minimum 30% tax on Discretionary Trusts. From 1 July 2028. Trustees of a Discretionary Trust will pay a Minimum tax of 30% on their taxable income with a Non Refundable offset for Individuals and No Offset for Companies. Income distributed to Bucket companies could now be paying 55% to 60% of tax on the income being higher than the individual marginal tax rate of 47% including medicare levy.

• Confirming, the 50% Discount for Capital Gains will be removed for all asset classes including property, shares, bullion, crypto and more from 1 July 2027 except for new residential property and Aged Pension recipients.

• Confirming, the 50% Discount for Capital Gains will no longer be available for Individuals, Trusts and Partnerships. Companies were not eligible for it with their lower tax rate and Super Funds will still keep their 33.3% CGT discount.

• New tax rates from 1 July 2026 of:

• $0 to $18,200 - 0%
• $18,201 to $45,000 - 15% (Down 1%)(Then 14% on 1 July 27)
• $45,001 to $135,000 - 30%
• $135,001 to $190,000 - 37%
• $190,000+ 45%
• Plus 2% base medicare levy on the above rates.

• Introduction of a $250 working Australians Tax Offset from the 2028 Financial Year.

• Increasing the standard deduction for work-related expenses without substantiation to $1,000 from the 2027 Financial Year. You can still claim more than $1,000 of deductions but the usual substantiation rules will apply. Donations, union fees and professional association membership fees can be claimed on top of the $1,000 standard deduction. The current amount is $300.

• Giving the voluntary option of Monthly PAYG Instalments and looking to force taxpayers with history of non-compliance onto Monthly PAYG Instalment reporting instead of Quarterly reporting.

• The Private Health Insurance rebate for people aged over 65 will be reduced from 32.158% or 28.139% back to 24.118%.

Businesses

• The Instant Asset Write Off of capital assets up to the limit of $20,000 for small businesses with a turnover of under $10 million will be made permanent.

• The Government will introduce a Minimum 30% tax on Discretionary Trusts. From 1 July 2028, Trustees of a Discretionary Trust will pay a Minimum tax of 30% on their taxable income with a Non Refundable offset for Individuals and No Offset for Companies. Income distributed to Bucket companies could now be paying 55% to 60% of tax on the income being higher than the individual marginal tax rate of 47% inc medicare levy.

• Reintroduction of the loss carry back rules for companies where they can carry a tax loss back to the two prior tax years and offset it against tax paid. This is limited to a company's franking account balance.

• Introduce a loss refundability scheme for small start-up companies from 1 July 2028 with turnover of less than $10 million that generate a tax loss in their first two years of operation. These companies will be able to utilise the loss to generate a refundable tax offset limited to the value of Fringe Benefits Tax and Withholding Tax on wages on Australian employees in the loss year.

• All electric vehicles up to $75,000 that are provided before 1 April 2029 will continue to be exempt for Fringe Benefits Tax. Electric Vehicles costing more than $75,000 will be eligible for a 25% reduction of Fringe Benefits Tax.

• Pay Day Super commences 1 July 2026 with Employers required to pay super for employees on the same day as wages are paid. For the month of July 2026, this would require super for the quarter from 1 April 2026 to 30 June 2026 to be paid by 28 July 2026 while super is also to be paid from 1 July 2026 on each pay day going forward.

Super Funds

• Super Funds exempt from the 30% Minimum tax on Capital Gains

• Super Funds keep their 33.33% CGT Discount.

The Federal Government is estimating a $28.3 billion deficit for this 2026 Financial Year, a $31.5 billion deficit for the 2027 Financial Year, a $31 billion deficit for the 2028 Financial Year and a $34 billion deficit for the 2029 Financial Year. The forecast is for budget deficits for the next 10 years with the first year of a surplus possibly expected in 2036.

Government Gross Debt is expected to be $982 Billion in this 2026 FY increasing to $1.051 Trillion in the 2027 FY being 34% of GDP and peak at 35.8% of GDP in the 2029 FY with $1.193 Trillion of Gross Debt.

Call now to connect with business.

10/07/2025

We have had our End of Financial Year celebration with golf at Pacific Golf Club at Carindale which is a nice course and lunch at Wellington Point. Beautiful weather!!

We are ready to serve our clients in this New Financial Year.

02/04/2025

Our Government passed legislation last week for the personal tax cuts starting 1 July 2026 in 15 months when they would normally start in 3 months.

ATO general interest charge and shortfall interest charge has been made NOT tax deductible from 1 July 2025 which is a Disgrace. If you have outstanding debts with the ATO, you may want to pay them off by 1 July 2025. The ATO General interest rate is currently 11.17% and soon not tax deductible.

The Small Business instant asset write off has been extended until 30 June 2025 which is good. This should become permanent.

26/03/2025

A news article that the Federal Budget seems to indicate that Labor intends to keep the Division 296 15% tax on super balances over $3 million. This would be our first tax on unrealised gains and should never become law.

It was one of Kamala Harris’ most controversial policies that even one of her most ardent supporters called an “economy killer” — but Tuesday’s budget reveals Labor is full steam ahead on taxing unrealised capital gains.

31/07/2024

You must disclosure Capital Gains on Crypto currency investments. The ATO is obtaining Account Identification data and transaction history from Crypto Currency Exchanges for the 2024 to 2026 Financial Years and onwards. The ATO expects data for 700,000 to 1,200,000 individuals and entities and will match the data to their Tax Returns to check for correct disclosure of capital gains. If you have sold or switched a crypto currency or coin, then you need to calculate the capital gain or loss and disclose it correctly in your Tax Return.

05/07/2024

New Bonus Tax Deduction for Energy Efficient Assets for the 2024 FY

A New Energy Incentive for small businesses has been introduced that applies to expenditure on qualifying energy efficient depreciating assets acquired between 1 July 2023 to 30 June 2024 where a 20% bonus tax deduction applies on the expenditure up to a maximum $20,000. This is quite broad and likely you will have expenditure on depreciating assets or improvements to depreciating assets that qualifies. However, some assets will not be as easy to identify as usual and you will need to identify and create a list of eligible expenditure so that you can claim the maximum additional tax deduction. We have provided information in the link below to assist you in identifying your eligible assets. For example, qualifying assets can include computers, fridges, air conditioners, TVs and LED lights. If you paid an electrician to change fluro lights to LED lights, this is a qualifying asset but it would be hard for us as accountants to know that it qualifies and wasn't just a normal electrical repair.

05/07/2024

The Small Business Instant Asset Write Off is confirmed as $20,000 Threshold for the 2024 and 2025 Financial Years. Assets costing less than $20,000 excluding GST for Small Businesses can be expensed. The bill was passed on 28 June 2024. The Senate was trying to get the Threshold to $30,000 and to apply to Medium Size Businesses with a turnover of up to $50 Million but the Government in the House of Representatives didn't agree and won out.

15/05/2024

The 2024-25 Federal Budget has been released. We answer the question, "What is in it for me?" However, very little this year except for electricity subsidies and already legislated tax cuts that got reallocated to lower income earners and increases bracket creek. Points to note include:

For Individuals:

-Already announced and legislated tax cuts that increase bracket creep going forward with the new tax rates from 1 July 2024 of:

• $0 to $18,200 - 0%
• $18,201 to $45,000 - 16% (Down 3%)
• $45,001 to $135,000 - 30% (Down 2.5%)
• $135,001 to $190,000 - 37%
• $190,000+ 47%
• Plus 2% base medicare levy on the above rates.

-Electricity subsidy of $300 for each household being $75 paid for each quarter in the 2025 Financial Year.

-Government to pay Superannuation on paid parental leave from 1 July 2025.

-Social Security deeming rates to be frozen for a further 12 months for deemed income on investments for eligibility for Centrelink benefits.

-Paid Parental Leave is already legislated to increase by 6 weeks over the next 3 years. Paid Parental Leave will increase to 22 weeks from 1 July 2024, 24 weeks from 1 July 2025 and 26 weeks from 1 July 2026.

For Businesses:

-Instant Asset Write Off of capital assets up to the limit of $20,000 has been extended for 1 year to 30 June 2025 for small businesses with a turnover of under $10 million. It could return to $1,000 from 1 July 2025 but it is likely to be extended at a higher amount than $1,000.

-Electricity subsidy of $325 to eligible small businesses.

For Superannuation:

-The Super Guarantee rate to increase to 11.5% on 1 July as previously legislated.

The Federal Government is estimating a $9.3 billion surplus for this 2024 Financial Year, a $28 billion deficit for the 2025 Financial Year and a $42 Billion deficit for the 2026 Financial Year. Net debt is estimated at $500 Billion for the 2024 Financial Year and $553 for the 2025 Financial Year. The Government is in a position of needing to not drive up inflation with their spending and there are concerns that their level of spending in this budget over the next 2 to 3 years could keep inflation up and keep pushing cost of living pressures that are affecting people. We will have to wait and see how the spending measures over the next 2 years affect the economy.

Call now to connect with business.

30/10/2023

Our 1st Bound set of Documents prepared for a client meeting at our New Office!

30/10/2023

We have moved into our New Office at Unit 3, 151 Old Cleveland Road Capalaba! 10 years of running the business from home and now we start a new Chapter at a New Location!