14/05/2026
Tuesday's Federal Budget brings real consequences for small business owners.
Some of the more significant proposals include broader-than-expected changes to negative gearing and the CGT discount, as well as measures that could effectively bring an end to the pre-1985 CGT asset exemption. These rules are a real hit to long-running family businesses as well as startups founded in Australia.
The Budget also flagged a minimum 30% tax on discretionary trust distributions, an area already generating considerable discussion, particularly around the ongoing complexities of trust taxation, Division 7A and family trust distribution tax. This piles on top of an already complicated area and many business owners are already considering their options ahead of next year.
There are some genuine positives, including a permanent Instant Asset Write-Off, better targeting of R&D tax incentives and loss refundability for startups.
If you want to understand what the Budget changes actually means for your business beyond the headlines, Business NSW has put together a worthwhile read: businessnsw.com/members/member-alerts/federal-budget-2026-2027
With tax planning season approaching, reach out to the team to talk through how this impacts your situation.
