We shouldn’t be surprised as the changes have been the governments higher taxing position since losing the 2016 and 2019 elections (by being open about it) So bringing in the taxes by openly lying they wouldn’t, well I guess we shouldn’t be surprised at all.

There is a new tax world order to adapt into (and at CIA tax we have been advising it would come for quite some time) there’s still more higher tax changes to come and yet it’s not all doom and gloom if you get out in front of the curve. 

We are staying positive!

Do not miss joining with us on the 26th of May (6pm) for end of year tax tips and these major CGT, Negative Gearing and Family Trust Changes.

·        Tax (saving!) Seminar: Tuesday 26 May, 6pm at Kingston Arts (Opposite our office) simply reply to this email. Session will also be recorded so if you cannot join us on the night we can send it out to you the next day.

Tax planning has never been more important..

 Key tax measures introduced in the Federal Budget 2026-27

(abridged version courtesy of our very own Tax Institute)

 Removal of 50% CGT Discount

From 1 July 2027, the 50% CGT discount will be replaced by cost base indexation, with a 30% minimum tax on net capital gains. These changes will apply to all CGT assets, including pre-1985 CGT assets, held by individuals, trusts and partnerships except for new residential properties.

Surprisingly, the government announced tonight that it will effectively end the exemption for pre-CGT gains for increases in asset values from 1 July 2027. The pre-CGT exemption was a legacy of excluding assets already owned when CGT was introduced over 40 years ago.

Investors purchasing new residential properties will be able to choose either the 50% CGT discount, or the new cost base indexation and 30% minimum tax.

 Negative gearing changes

Negative gearing for residential properties will be limited to new builds. From 1 July 2027, losses from established residential properties purchased from 7:30pm (AEST) on 12 May 2026 will only be deductible against rental income or the capital gains from residential properties.

Properties acquired prior to this time (including contracts entered into but not yet settled) will be exempt from the changes until sold.

 Minimum 30% tax rate for trust distributions

Taxable income of discretionary trusts, currently taxed at the recipient’s marginal tax rates, will attract a minimum 30% tax rate from 1 July 2028. Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee.

Exemptions include fixed and widely held trusts (including fixed testamentary trusts), complying superannuation funds, special disability trusts, deceased estates and charitable trusts. Primary production income, certain income relating to vulnerable minors, amounts to which non-resident withholding tax applies, and income from assets of discretionary testamentary trusts existing at announcement will also be excluded.

$250 Working Australian Tax Offset

A $250 Working Australians Tax Offset will be introduced from the 2027–28 income tax year. This is a permanent annual tax offset for Australians for their income derived from work, such as wages and salaries and the business income of sole traders, from 1 July 2027. This will increase the effective tax-free threshold for income derived from work by nearly $1,800 to $19,985 (or up to $24,985 for workers eligible for the Low Income Tax Offset).

$1,000 income tax deduction

From 1 July 2026, taxpayers can claim up to a $1,000 deduction for work-related expenses, without keeping receipts. This measure applies to the 2026–27 financial year.

The $1,000 standard deduction will simplify things for many people however by claiming this deduction, you cannot claim any actual expenses over and above that amount.

The $1000 instant deduction excludes union fees/professional membership fees.

Do your maths carefully and keep appropriate records!

Reduction of FBT discount for EVs

The FBT exemption for electric vehicles (EVs) will be replaced with a permanent 25% FBT discount, this will take effect:

·       from April 1, 2027 for EVs worth more than $75,000

·       from April 1, 2029 for EVs worth less than $75,000

Individual tax cuts

As announced in the Federal Budget 2025-26, the lowest marginal tax rate was reduced from 16% to 15% for income between $18,201 and $45,000.

Permanent extension of the Instant Asset Write-Off for small business

From 1 July 2026, the instant asset write‑off will become permanent for assets valued up to $20,000 held by small businesses with turnover up to $10 million.

For loss carry back (companies) and other tax topics in a more detailed report just reply to this email!
 

The tax saving seminar is at: 979-985 Nepean Highway, Moorabbin Victoria 3189