The May 2026 Federal Budget introduces some of the most significant proposed tax reforms Australia has seen in decades. While a small number of measures provide modest relief for employees and small businesses, the broader direction of the Budget is clear: investment structures, discretionary trusts, capital gains and property tax concessions are all coming under […]
Capital Gains Tax (CGT) overhaul proposed from 1 July 2027 One of the most significant announcements in the Budget is the proposed overhaul of Australia’s CGT system. The current 50% CGT discount for individuals and trusts is proposed to be replaced with inflation indexation of the cost base. In practical terms, taxpayers would no longer […]
Instant asset write-off made permanent In positive news for small businesses, the $20,000 instant asset write-off for businesses with turnover under $10 million has been made permanent. This provides ongoing certainty for businesses investing in vehicles, equipment, computers, technology and office fit-outs. Loss carry-back rules return From 1 July 2026, eligible companies with turnover under […]
Previously legislated personal tax cuts continue.No major new personal tax cuts were announced in the Budget, however previously legislated reductions remain scheduled to proceed. The tax rate applying to income between $18,201 and $45,000 will reduce from 16% to 15% from 1 July 2026, and then to 14% from 1 July 2027. Tax savings remain […]
No major new super measures announced The Government did not announce any new major superannuation measures in the Budget. The only super item of note was some additional funding to extend an ATO Tax Integrity Program which is expected to raise an extra $31 million in unpaid superannuation from medium and large businesses and wealthy groups […]
Support for small business franchisees The Government will provide $7.1 million over two years from 2025–2026 for the Australian Competition and Consumer Commission (ACCC) to strengthen regulatory oversight of the Franchising Code of Conduct and ensure a more transparent and effective regulatory framework for the franchising sector. The Government will also provide $0.8 million in 2025–2026 for […]
Extending subsidies for apprentices and fee-free TAFE The Government will provide $722.8 million over four years from 2025–2026 to deliver increased support for apprentices. Funding includes: As previously announced, the Government will also provide $253.7 million over two years from 2026–2027 (and an additional $1.4 billion from 2028–2029 to 2034–2035) to make Free TAFE a permanent program, funding […]
Personal tax rates cut from 1 July 2026 and 2027 The Government has proposed to cut the personal income tax rate for the income threshold ($18,200 to $45,000) from 16% to 15% (from 1 July 2026) and 14% (from 1 July 2027). Under the proposed changes, every Australian taxpayer will receive a tax cut of up to […]
Paying super on Government paid parental leave from 1 July 2025 confirmed The Budget confirmed the proposal to pay superannuation on Government-funded paid parental leave (PPL) for births and adoptions on or after 1 July 2025. From that time, the super guarantee (SG) rate will be 12% (up from 11.5% for 2024–2025). Therefore, eligible parents […]
$20,000 instant asset write-off for small business extended to 30 June 2025 The Government will extend the instant asset write-off concession for small businesses for another 12 months. This will allow small businesses with turnovers capped at $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are […]
Personal tax rates: Stage 3 (as revised) confirmed from 2024–2025 In the 2024–2025 Federal Budget, the Government did not announce any further changes to the personal tax rates. The Government’s revised Stage 3 tax changes (as announced on 25 January 2024 and enacted into law by the Treasury Laws Amendment (Cost of Living Tax Cuts) […]
Personal tax rates and offsets for 2023–2024 and beyond With no announced changes in the Federal Budget to personal tax rates and offsets for the 2023–2024 income year and beyond, now is the time to do some tax planning for the current and future years. For the 2022–2023 and 2023–2024 income years, the rates and […]
Super to be paid on payday from 1 July 2026; more action to catch non-payers The Budget papers confirmed the Government’s intention to require all employers to pay their employees’ super guarantee amounts at the same time as their salary and wages from 1 July 2026. This payday super measure was originally announced by the […]
Small business lodgment penalty amnesty The Government announced that a lodgment penalty amnesty program will be provided for small businesses with aggregate turnover of less than $10 million to encourage them to re-engage with the tax system. The amnesty will remit failure-to-lodge penalties for outstanding tax statements lodged in the period from 1 June 2023 to […]
Small business instant asset write-off: $20,000 threshold for 2023–2024 The Government will temporarily increase the instant asset write-off threshold to $20,000 from 1 July 2023 to 30 June 2024. Small businesses – those with aggregated annual turnover of less than $10 million – will be able to immediately deduct the full cost of eligible assets […]