14 May Federal Budget 2026-2027
Posted at 11:43h
in ATO, Budget, Business, Investment, News, Newsletter, Practice Updates, super investment, Taxation
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We are pleased to supply you with the special Budget edition of Client Alert, which outlines key announcements of the May 2026 Federal Budget.
- Personal Taxation – Existing tax cuts continue from 2026–27 and 2027–28, a new $250 Working Australians Tax Offset from 2027, a $1,000 standard work-related expense deduction, and unchanged LITO and Medicare levy thresholds.
- Business Taxation – Small business instant asset write-off is permanently set at $20,000, loss carry-back is reintroduced, start-up loss refundability is introduced, and EV FBT concessions are progressively reduced over time.
- Major CGT, trusts and negative gearing reforms – The 50% CGT discount will be replaced by indexation plus a minimum 30% tax on gains from 2027, discretionary trusts will face a 30% minimum tax from 2028, and negative gearing will be restricted mainly to new residential builds from 2027.
- Superannuation – No major new measures were introduced, with existing reforms such as payday super and the Division 296 tax on balances above $3 million still progressing, while super funds broadly retain concessional CGT treatment.
Please contact us if you wish to discuss how the points raised in Client Alert specifically affect you.
Yours sincerely, the Team at Rittwatchman & Associates
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