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What the 2026–27 Federal Budget Means for Individual Taxpayers and Investors
On Tuesday 12 May 2026, Treasurer Jim Chalmers handed down the Albotross Government Budget that, if legislated, will be the most significant shake-up of the tax treatment of investments in our lifetime. Three measures sit at the heart of it: a wind-back of negative gearing on residential property, the replacement of the 50% capital gains tax (CGT) discount with indexation PLUS a 30% minimum tax on CGT, and a brand-new 30% “minimum tax” on the taxable income of discretionary (family) trusts.
2026-2027 Budget first look for businesses
The 2026-2027 Federal Budget is probably the single largest betrayal of the Australian people by a government. The Albotross government not only did a 180 on the promises they made during the 2025 federal election, when the Albotross emphatically stated when asked a question on whether they intend to introduce changes to capital gains or negative gearing, “I have answered that question 50 times already and the answer is still no”. Well 51 times no, turned into the 52nd question being a big fat YES, he gave the Australia people the finger, on Tuesday night. But I suppose what can we expect from a politician.
Fringe benefits tax 2026: what small businesses need to know
The 2026 FBT year is a useful reminder that fringe benefits tax is often less about major rule changes and more about whether businesses have identified benefits properly and kept the right records. Vehicles, staff reimbursements, meal and entertainment spending, and electric vehicle arrangements continue to be common areas where issues arise. In many cases, the tax outcome depends on the detail and the documentation, not just the type of expense. For small businesses, the best starting point is a simple review of what was provided during the year ending 31 March 2026 and whether the supporting records are complete. We have outlined the main risk areas and some practical next steps in the full article. If you would like a simple way to work through your position, you can also use the FBT questionnaire linked in this newsletter.
Why Keep the 50% Capital Gains Tax Discount?
There’s been a lot of talk lately about reducing Australia’s 50% capital gains tax (CGT) discount, with some arguing it mostly helps the wealthy. However, it’s important to consider the other side: hundreds of thousands of everyday Australians benefit from this discount – not just billionaires. And historically, Australia didn’t tax capital gains at all until 1985. So before jumping to cut the CGT discount, let’s look at why it exists and who it helps.
Important information for SMSF Trustees: Understanding NALI and NALE
Non-Arm’s Length Income (NALI) and Non-Arm’s Length Expenses (NALE)
NALI and NALE are critical concepts for Self-Managed Superannuation Funds (SMSFs). They exist to ensure all transactions are conducted on commercial, arm’s-length terms, as required by the Superannuation Industry (Supervision) Act 1993 (SIS Act). Breaching these rules can lead to severe tax penalties and compliance risks.
$3 Million Super Tax Overhauled: Labor changes Div 296
October 2025 – The Australian Government has announced significant changes to its proposed Division 296 superannuation tax, often nicknamed the “$3 million super tax.” These revisions come after widespread criticism of the original plan and aim to make the policy fairer and more practical. Below we break down what’s changing, when the new rules start, and how they impact individuals and super funds in an accessible way.
Pay Day Super what’s the big hoorah!
Payday super, an employer’s new nightmare! From 1 July 2026, Payday Super will require Australian employers to pay Superannuation Guarantee (SG) contributions at the same time as wages, rather than quarterly.
Employers should begin preparing now by reviewing payroll processes, consulting software providers, and training staff
Understanding the Main Residence Exemption
The capital gain tax exemption (CGT) on your principal place of residence (PPR) is one of the most valuable CGT concessions available to Australian homeowners. It can allow you to completely disregard a capital gain made on the sale of your family home. But what happens if you move out your PPR and rent it out or leave it vacant?
Your HECS debt is set to fall
In a move that’s set to ease the financial pressure on millions of Australians students, the Federal Government has passed the Universities Accord (Cutting Student Debt by 20 Per Cent) Bill 2025—a landmark reform that delivers a 20% reduction in student loan debt and raises the income thresholds for repayments.
The Government increases the burden on small business
The Government has removed the tax deduction for ATO General Interest Charges, from 1 JUly 2025.
The Australian Taxation Office (ATO) has recently announced a significant change that will significantly impact small businesses from July 1, 2025. From this date, General Interest Charges (GIC) will no longer be tax deductible.
This change has potential to significantly impact small business given how difficult it can be for small business to access finance. This also makes one wonder if the Government really wants to support small business, particularly given the current economic conditions and the substantial increase in small business insolvencies.
2025 Fringe Benefits Tax year
The 2025 Fringe Benefits Tax (FBT) year is coming to a close, read our article to see what employers should be doing, it is important for employers to review any fringe benefits they may have provided to employee and record vehicle odometer reading for the FBT year. FBT pertains to any non-cash benefits employers provide to their employees. The ATO have an aggressive compliance stance when it comes to FBT, employers need to be on the front foot to avoid any potential penalties.