What has passed?
From 1 July 2026
- Individuals – $1,000 standard deduction for work related expenses
From 10 August 2026
- Self Managed Superannuation Funds – Limited Recourse Borrowing Arrangements (LRBA) no longer permitted for acquisitions of Residential Property
From 1 July 2027
- Capital Gains – 50% CGT discount for individuals, trusts and partnerships replaced with cost base indexation and a 30% minimum tax rate – Except for new builds purchased after 1 July 2027
- Negative Gearing – Negative gearing on residential investment properties purchased after 7:30 pm AEST on 12 May 2026 only applies to new builds
- Individuals – $250 Working Australians Tax Offset
- Small Business CGT – Increase turnover threshold to $10m for the Active Asset Discount
What has not yet passed?
- Companies – Loss Carry back for 2026-27 and 2027-28
- Businesses – $20,000 Instant asset write off being permanent
- 30% Minimum tax on discretionary trusts & limitations on distributions to corporate beneficiaries. It has been announced that there will be a carveout for Testamentary Trusts.
- 30% Minimum tax on discretionary trusts & limitations on distributions to a corporate beneficiary
- Changes to Fringe Benefits Tax (FBT) exemption for electric vehicles
- Research and development tax incentive (R&D) changes
If you have any questions in relation to the Federal Budget, please do not hesitate to contact your Harris Black Tax Specialist.