Following the 2026 Federal Budget, the Government's overhaul of Australia's capital gains tax (CGT) rules has now passed Parliament and received Royal Assent. This is no longer a proposal — it is confirmed law, and it represents the most significant change to CGT since the 50% discount was introduced in 1999. Below is a plain-English summary of what's changed, what it means for you, and what to consider before 1 July 2027.


What has changed

• The flat 50% CGT discount for individuals, trusts and partnerships is abolished for gains accruing from 1 July 2027. In its place, a cost base indexation regime applies — your asset's cost base is adjusted for inflation before calculating the gain — combined with a minimum tax rate of 30% on the post-reform (real) portion of the gain.
• Existing gains are protected. Under a deemed-sale/grandfathering mechanism, any gain that has accrued up to 30 June 2027 retains the current 50% discount, and tax on that portion is deferred until you actually sell. Only growth accruing from 1 July 2027 onward is taxed under the new rules.
• New residential dwellings and affordable housing retain access to the existing 50% discount, and the four small business CGT concessions are preserved in full — with the turnover threshold for the small business 50% active asset reduction increased from $2 million to $10 million as part of amendments made during passage.
• Negative gearing has been restricted: residential dwellings acquired after 7:30pm (AEST) on 12 May 2026 will no longer qualify for negative gearing treatment from 1 July 2027, though existing arrangements are grandfathered.
• Recipients of certain means-tested payments (Age Pension, JobSeeker, DSP and others) are exempt from the 30% minimum tax in years they receive a qualifying payment.
• A new Innovative Business CGT Concession (IBCC) is being developed to preserve concessional treatment for genuine start-up founders, employee share scheme participants and early-stage investors — details are still subject to consultation.
• Separately, foreign residents face an expanded definition of "real property" for CGT purposes, with some elements proposed to apply retrospectively from 2006 — this remains a distinct measure worth discussing if it affects you.

What this means for you

• If you hold investment property, shares, or trust units: the gain you've accrued to date keeps the 50% discount and isn't taxed until you sell — you don't need to rush a sale before 30 June 2027 purely because of this reform. However, it's worth reviewing your position with us, since a formal valuation as at 30 June 2027 may be needed to establish the baseline for what's taxed under the new rules.
• If you're planning a new investment, particularly residential property, the changed negative gearing rules and the future CGT treatment should factor into your decision now, not later.
• If you run a small business, the increased $10 million turnover threshold for the active asset reduction may open up concessions that weren't previously available to you.
• If you're a start-up founder, early investor, or hold equity through an employee share scheme, keep an eye out for further detail on the IBCC as it's developed.
• If you're a foreign resident with Australian property-related interests, the broadened "real property" definition warrants a closer look at your specific circumstances given its retrospective elements.

What we recommendBecause the law is now settled, this is a good time — not a rushed one — to review your position properly. We suggest getting in touch if any of the following apply to you:

• you hold investment property, shares or trust units with significant unrealised gains,
• you're planning to buy or sell an investment asset in the next 12–18 months,
• you run a small business and want to understand the revised concessions,
• you're a foreign resident with Australian property interests, or
• you're a start-up founder or early-stage investor wanting to understand the IBCC.

We'll help you work out whether a pre-30 June 2027 valuation, a change in timing, or other planning makes sense for your circumstances.
What happens nextWe're continuing to monitor guidance from the ATO and Treasury as the detail is worked through — including the IBCC consultation — and will keep you updated as it becomes available. In the meantime, please reach out if you'd like to discuss how these changes affect you personally or your business.

None of us plan to lose capacity - which is exactly why the paperwork needs to be done before it is needed, not after.

It's more common than you think. In 2026, an estimated 446,500 Australians are living with dementia — and two in three of them still live at home, often still managing their own money and tax affairs. That number is expected to more than double by 2065. It's also not just an "old age" issue — around 29,000   Australians living with dementia are under 65.

The bottom line: this isn't a distant, hypothetical risk. It's something worth planning for now, while you're able to.

Why it matters for your finances

1. Powers of Attorney — get this sorted first You can only sign an Enduring Power of Attorney (EPA) while you're mentally capable. A standard Power of Attorney stops working the moment you lose capacity — an enduring one keeps going. If you don't have one in place before it's needed, it may be too late to get one.

2. Self-Managed Super Fund? Take extra care If an SMSF trustee loses capacity, the fund can become non-compliant, triggering serious tax consequences — and there's only a six-month window to fix it. The solution: have an EPA in place, check your trust deed actually allows your attorney to step in as trustee, and name a backup attorney (not just your spouse, who may face the same risk at a similar age).

3. Wills need updating while you're able A will is only valid if you understood what you were signing at the time. It's worth reviewing your will alongside your EPA, not as an afterthought.

4. Bank accounts and day-to-day access Joint accounts let a partner keep things running smoothly. Sole accounts don't — so make sure someone you trust has authority to help manage things, arranged while you're still able to set it up.

5. Choose your attorney carefully The right person protects you. The wrong one can create serious problems. Think it through, and if you're appointing more than one person, make sure they can genuinely work together.
A simple checklist to run through

• Do you have an EPA — and is it current?
• If you have an SMSF, does your trust deed let your attorney step in as trustee?
• Is your will up to date, made while you were clearly of sound mind?
• Can someone you trust step in on your bank accounts if needed?
• Have you told your attorney or family what you'd want?
• Do you have a backup attorney in place?​

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The takeaway
This isn't about expecting the worst — it's about making sure your affairs run smoothly no matter what happens. A short conversation now can save a lot of stress (and expense) later. If you'd like help reviewing your EPOA, SMSF arrangements, or estate plan, get in touch.

Putting important company policies in writing makes good business sense. It compels you to think about how you want your workplace to run and the things you want to emphasise, and it makes these rules and guidelines official so that your employees know what you expect from them. It is also a good reflection of the values you want to instill in your business which can be helpful for employees and customers alike. 

While you don’t need a policy on absolutely every aspect of the company’s workings, there are some key policies you should have to provide information on responsibilities and rights in crucial areas. 
The aim is for everyone to understand and adopt them, so keep them as simple as possible. Below are the 3 policies every company should have written down and easily accessible.  

Work health and safety 
Having a work health & safety (WHS) policy is all part of meeting your obligations to manage workplace risks and ensuring your workers’ health & safety. 
The policy should clearly describe how your workplace will be kept out of harm's way and healthy, the procedures necessary to achieve this, and what all your team members need to do. You may need separate policies for different departments; eg. Factory and office. 
WHS information must be shared with workers, which helps ensure they are engaged in WHS matters. It also helps reduce absenteeism, increases productivity, and gives your employees confidence in their place of work and management. 

Bullying and harassment 
Part of your obligation to keep workers safe and healthy is making sure your workplace is free from bullying, harassment, and discrimination. 
A bullying and harassment policy should define and document how issues are reported, and how the business will respond and seek to resolve them (by law, you must investigate the matter and support the person affected). 
Having an official policy sets the best example of what is acceptable and clarifies the rights and obligations of both employees and their managers. 

Code of conduct & social event expectations 
Once you’ve covered the essential policies, you can develop a code of conduct that covers a range of general expectations for everyone in the business.  
The scope of the code will be determined by the particulars of your business and doesn't have to be complex but should articulate the company’s values and align standards of professional behaviour with its principles and mission. 
It should also cover key areas like the use of company assets, protecting confidential information, avoiding conflicts of interest, and complying with laws and regulations. This is also where you can cover the expected behaviour of your staff at the company Christmas party and other social events. 
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While Christmas parties don’t have to be either a massive bash or a boring, box-ticking exercise, we’ve got some tips to ensure it is fun as well as being healthy and respectful. 
Company Christmas parties are things of legend. Everyone knows the stories about employees that took the opportunity to let their hair down just a little too far. These days, most businesses understand that letting staff cut loose at the Xmas bash poses potential health & safety and even legal risks. 

So, here are a few important things to keep in mind when you're planning and attending this year's annual party: 

• Easy on the alcohol - too much drinking causes problems, so think about activities that don’t revolve around it. There are plenty of fun things to do without lots of booze. Consider having a yummy mocktail available for those who aren’t keen on drinking, as well as a delicious break for the drinkers. 
• Set limits - have a clear finish time and organise transport home. A coach from a central location to the venue and back can be a helpful start. 
• A family friendly event can be one way to ensure an appropriate attitude is taken by everyone toward their behaviour. 
• If in doubt, create a separate Christmas or social party policy - writing down and sharing the company's expectations will help everyone stay respectful and in control. You could keep the tone light, so everyone reads and understands it. Maybe send out a reminder email with the policy each year to your staff. 

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Remember, if you plan and communicate well, the Christmas party will be a time for you and your team to celebrate together in a relaxed setting with smiles all round. 
There are many policy and procedure templates available online to download but be sure you are using a source that is right for you. Have they been prepared with Australian (or your location's) related laws in mind? Be sure to go through the templates with a fine-tooth comb before setting these in stone. ​

As an Australian taxpayer, it is a legal requirement to lodge your annual tax return with the Australian Taxation Office (ATO) at the end of each financial year - 30th June. 
The ATO have warned taxpayers to not lodge until late July and early August. This is because information needs to be completed and pre-filled - information ranging from health statements to employer income statements. Waiting for this information to be pre-filled reduces the likelihood of mistakes and omissions, which can result in taxpayers having to submit an amendment possibly causing issues and delays. 

Understanding how deductions work
Deductions work by reducing your taxable income and thus lowering the amount of tax owing. Your taxable income is your total income made annually minus any allowable deductions.

Which work-related expenses can you claim:
If you spend money in the course of performing your job or running your business, some of those costs may be tax-deductible.
To claim a work-related deduction, the following must apply:

• You paid for the expense yourself and weren’t reimbursed.
• The expense is directly related to your income-earning activities.
• You have a record or receipt as evidence.

Common deductible work-related expenses include:

• Car, travel, and transport costs.
• Tools, equipment, and technology used for work.
• Work-related clothing and uniforms.
• Home office expenses.
• Training, education, and seminar fees.
• Union fees, memberships, accreditations, and licenses.
• Overtime meal costs.
• Certain health and medical-related expenses.

Other deductible expenses - non-work related
You may also be able to claim deductions for:

• Charitable donations and gifts.
• Expenses related to investment income.
• Personal superannuation contributions.
• Income protection insurance.
• Costs associated with managing your tax affairs.

How to claim your expenses
The ATO requires you keep receipts and documentations as proof for all claims - this means accurate record-keeping is essential. 
There are tools available to make this process easier. The office ATO app to track any deductions whether work-related or other, is myDeductions. These records can be uploaded directly when lodging your return via myTax, or shared with us if we are preparing your return as your registered tax agent. 

Need a helping hand?
Claiming all the deductions you're entitled to can significantly reduce your tax bill. Our team can guide you through setting up efficient record-keeping systems and ensure you claim the appropriate deductions - both work-related and personal.

Contact us today on (08) 9367 4199 to make sure you’re getting the most from your tax return.
Or checkout out checklists available that will help guide you through your individual tax return. 

Why Lodging an FBT Return Matters
Here’s what every business owner should know:

• Lodging an FBT return—even if no FBT is payable—limits the audit window to three years.
  • If you don’t lodge, the ATO can audit you at any time in the future.
• Not lodging is an audit trigger. The ATO has confirmed that businesses not lodging FBT returns increase their risk profile.
• There are real consequences. A small business recently received an FBT bill of $13 million, covering the years 2012 to 2023—simply because they had never lodged any FBT returns.

Even if your risk level is much lower, the 47% FBT rate means it’s important to take this seriously.

Does Your Vehicle Qualify for FBT Exemption?
If you’re providing what you believe to be a commercial vehicle, it must meet specific definitions to be exempt from FBT:

• A taxi, panel van, or utility truck designed to carry a load under one tonne, or
• Any other road vehicle designed to carry a load under one tonne (excluding vehicles primarily designed to carry passengers).

Even if your vehicle qualifies under these definitions, exemption only applies if the private use is considered minor and infrequent.
According to the ATO guidelines (active since 2018), this means:

• No more than 800 km of private use per year, and
• No individual private trip exceeding 200 km.

What You Should Do Next
To protect your business and reduce FBT exposure, here’s what we recommend:

1. Have employees complete a "minor and infrequent use" declaration
   You can download a declaration form from our website here:
   👉 Work Horse Vehicle Declaration
2. If private use exceeds the exemption limits, then:
   • Have employees keep a logbook, ideally updated every 1–2 years (not every 5 years, as some mistakenly believe), or
   • Have employees reimburse the business for personal kilometres driven.
3. If your vehicle does not meet the commercial vehicle definition, it’s crucial you reach out. We can help calculate any required employee contributions and lodge an FBT return if necessary.

Our Final Advice
Lodge an FBT return—even if no FBT is payable.
It’s a relatively small cost that could save you thousands and provide peace of mind knowing your audit risk is minimised.
 
If you need help, clarification, or want us to handle this for you—please don’t hesitate to reach out either by email at support@prestoncorporate.com.au or call us at (08) 9367 4199. We’re here to support you.

When receiving a document from FuseSign, you will receive an email similar to this:

The process itself is very similar to Annature - that is, you are not required to login. Simply insert your signature where you are prompted and submit. ​

Keep an eye out for FuseSign emails and reach out if you have any questions either by email at support@prestoncorporate.com.au or call us at (08) 9367 4199. 

1. $20,000 Instant Asset Write-Off Extended
The $20,000 instant asset write-off has been extended through to 30 June 2025. This allows eligible small businesses to immediately deduct the full cost of eligible depreciating assets costing less than $20,000. To qualify, the business must have an aggregated annual turnover of less than $10 million, and the asset must be first used or installed ready for use between 1 July 2024 and 30 June 2025.
This measure continues to be a valuable tool for small businesses that need to invest in equipment, tools, vehicles, or technology. Rather than depreciating the asset over several years, the entire cost can be written off in the year it was installed or used. This boosts cash flow and reduces taxable income, making it a strategic option for businesses planning purchases in the next financial year. However, each asset must be under the $20,000 threshold individually to qualify, and assets over that amount will be subject to general depreciation rules.
 
2. ATO to Deny Tax Deductions for Interest on Tax Debts
The Australian Taxation Office (ATO) is set to introduce a new measure that could have significant implications for businesses with outstanding tax debts. From 1 July 2025, businesses will no longer be able to claim a tax deduction for interest charges applied by the ATO. This change applies to both the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC), which are commonly incurred when tax payments are late or when there is a shortfall in the amount paid. While these charges were previously deductible, allowing businesses to reduce their taxable income, that benefit will soon be removed.
The shift appears to be part of a broader strategy to encourage more timely payment of tax debts. By making the financial consequences of late payment more costly, the ATO is encouraging businesses to settle their obligations more promptly and avoid accruing unnecessary interest. Businesses should take this opportunity to review their current tax debt positions and consider the potential impact this change may have on their cash flow and tax planning strategies.

3. Small Business Income Tax Offset
The Small Business Income Tax Offset continues to provide relief for unincorporated small businesses. This offset can reduce the income tax payable by up to $1,000 per year. It applies to sole traders, as well as individuals who receive net small business income from a partnership or trust, where the business has an aggregated turnover of less than $5 million.
The offset is calculated automatically when lodging a tax return, based on the proportion of business income and the overall taxable income of the individual.
While it doesn’t reduce the tax rate itself, it can provide a modest but valuable reduction in the total tax liability, especially for micro and home-based businesses. It's a good reminder for small business operators to ensure their income is correctly classified as business income and to keep detailed records to support their claims.
 
4. Monthly GST Reporting for Some Businesses
The ATO has started moving certain small businesses from quarterly to monthly GST reporting as of 1 April 2025. This change applies to approximately 3,500 businesses that have shown a history of non-compliance, such as consistently late Business Activity Statement (BAS) lodgements, unpaid GST debts, or incorrect GST reporting. Businesses that are selected will be formally notified by the ATO and will be required to submit and pay GST monthly instead of quarterly.
​The intention behind this shift is to help the ATO monitor at-risk businesses more closely and reduce the likelihood of large tax debts accumulating over time. For businesses affected, this change can increase the frequency and complexity of their reporting obligations and may require adjustments in bookkeeping practices and cash flow planning. It’s important to take proactive steps to stay compliant and up to date with obligations to avoid being selected for monthly reporting. For businesses already affected, automating BAS preparation and improving recordkeeping systems can help manage the extra workload.

These ATO updates reflect a broader focus on compliance, sustainability, and support for business investment. Whether you’re looking to claim deductions, invest in energy-saving equipment, or improve reporting practices, understanding the latest changes can help you make smarter decisions. With the end of financial year approaching, it’s an ideal time to review your current position, plan upcoming purchases, and ensure your business is on track.

If you're unsure how these changes might affect you and your business, get in touch with us either by email at support@prestoncorporate.com.au or call us at (08) 9367 4199. We can help you understand and ensure you're compliant moving forward.