The RBA's Conclusions
Surcharging on debit and credit cards should end from 1 October 2026 as it is no longer achieving its intended purpose. Previously, surcharging encouraged consumers to use cheaper payment methods. However, it has become harder for consumers to avoid surcharges. Consumers and businesses find surcharging rules complex and confusing, and surcharges are often not well disclosed.

Fees paid by businesses for card payments are too high. The RBA are lowering the maximum interchange fees that businesses pay for debit and consumer credit card payments. The RBA are also introducing a cap on interchange fees for foreign card payments. This should help to reduce card payment costs, especially for small businesses.
More transparency is needed over card payment fees, EFTPOS, Mastercard, Visa and large acquirers will have to publish the fees they charge, which will help businesses check how their fees compare. Businesses will get standardised information on their statements, which can help them to get accurate quotes from different providers.

Next steps
Most of the changes will come into effect on 1 October 2026, including the removal of surcharging and reductions in the interchange caps for domestic card transactions. The introduction of an interchange cap on foreign cards and some changes to payment cost transparency will come into effect later, on 1 April 2027, to ensure the payments industry has sufficient time to implement these more complex changes.

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 recommend now the law is passed, 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 next? We are 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.