13/05/2026
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๐๐๐๐ซ๐๐ฅ ๐๐ฎ๐๐ ๐๐ญ ๐๐ฉ๐๐๐ญ๐
The important thing to know is this: many of these reforms are proposals and could change as part of the legislative process before becoming law.
๐๐ก๐๐ง๐ ๐๐ฌ ๐ญ๐จ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐๐ข๐ง๐ฌ ๐๐๐ฑ
From 1 July 2027, the 50 per cent CGT discount will be replaced by cost base indexation for assets held for more than 12 months, with a 30 per cent minimum tax on net capital gains.
๐๐๐๐จ๐ซ๐ฆ๐ข๐ง๐ ๐๐๐ ๐๐ญ๐ข๐ฏ๐ ๐๐๐๐ซ๐ข๐ง๐
Negative gearing will no longer be available for existing residential properties purchased after Budget night. Positive gearing and neutral gearing (where borrowing costs are lower than rental income, for example) are not affected by this change.
Negative gearing would be limited to new residential property investments only.
๐๐ข๐ง๐ข๐ฆ๐ฎ๐ฆ ๐๐๐ฑ ๐จ๐ง ๐๐ซ๐ฎ๐ฌ๐ญ ๐๐ข๐ฌ๐ญ๐ซ๐ข๐๐ฎ๐ญ๐ข๐จ๐ง๐ฌ
The Government will introduce a 30 per cent minimum tax on discretionary trusts. From 1 July 2028, trustees will pay a minimum tax of 30 per cent on the taxable income of discretionary trusts.
Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee.
๐๐ง๐ฌ๐ญ๐๐ง๐ญ ๐๐ฌ๐ฌ๐๐ญ ๐๐ซ๐ข๐ญ๐ ๐๐๐
The $20,000 instant asset writeโoff for small businesses with turnover up to $10 million will be permanently extended from 1 July 2026.
