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 […]
Super contributions work test exemption extended; spouse contributions age limit increased The Budget confirmed the Treasurer’s announcement on 1 April 2019 that individuals aged 65 and 66 will be able to make voluntary superannuation contributions from 1 July 2020 (both concessional and non-concessional) without needing to meet the contributions work test. The age limit for […]
Tax integrity focus on larger businesses’ unpaid tax and super The Government will provide ATO funding of $42.1 million over four years to to increase activities to recover unpaid tax and superannuation liabilities. These activities will focus on larger businesses and high wealth individuals to ensure on-time payment of their tax and superannuation liabilities. However, […]
Instant asset write-off extended to more taxpayers; threshold increased The Budget contains important changes to the instant asset write-off rules. These changes are in addition to the measures contained in a Bill currently before Parliament. There are two key changes. First, the write-off has been extended to medium sized businesses, where it previously only applied […]
Personal tax cuts: low–mid tax offset increase now; more rate changes from 2022 In the 2019–2020 Federal Budget, the Coalition Government announced its intention to provide further reductions in tax through the non-refundable low and middle income tax offset (LMITO). Under the changes, the maximum reduction in an eligible individual’s tax from the LMITO will […]