2026/27 Federal Budget

Daniel Foelz • May 13, 2026

Carmen's Message:

Yesterday, I started my day with an interview on the ABC radio and was feeling pretty good about myself (I mean the ABC wanted to interview me!! We won’t mention that I don’t think anyone listens to ABC radio, but still...). My only stress was the hedge man was coming to trim my hedges, and I wanted to talk to him about some trees. Life was good, Friday I was going to the farm to tag some sheep.

Then I woke up this morning (I admit, I didn’t watch the budget) and my life has now changed, and real stress is coming my way.

The Family Trust
1000 - 2026
Died aged 1026, dearly loved and always remembered

Back in medieval England the humble trust was born. Moving gracefully into colonial times in Australia before it was tidied up and legislated in 1925. Our government has now killed it in one swoop of their axe. Because that is how big and powerful they are. Over 1000 years of humbly always being there to ensure small business and taxes were fair and reasonable. An Accountants only weapon for small business that was in our arsenal has now been confiscated.

Please understand that it will be some time before we actually get the law and work out what is our best plan of attack moving forward, but know that I aggressively support small business and will work out the best scenio we can to combat this. It will mean restructuring and costs and time that we all don’t have. But just be prepared.

CGT

Apparently, the solution to Australia’s housing issues is making investing less attractive while simultaneously wondering why nobody builds anything. This Government is so out of tune to how small business, families and us normal people work that it is no longer a joke.

In Conclusion

We will get through this, they will not take our positivity away from us, the swear jar at work is now smashed, I have no plans of ceasing my ciggies and I’m a little disappointed at the level of Pinot supplies at the office.

Soldier on people! We are small business and we do hold up this country!

For those keen enough to read on… here are the details…

Last night the Government handed down the 2026-27 Federal Budget and as expected, there are plenty of proposed tax changes, more complexity, and several new ways to make life harder for investors, business owners and accountants – believe us, we are just thrilled from these announcements...

As always, these are announcements only at this stage and still need to pass through Parliament before becoming law – so remember these changes are proposed only.

Capital Gains Tax Changes

From 1 July 2027, the Government plans to scrap the current 50% CGT discount and replace it with an indexed cost base method plus a minimum 30% tax on capital gains.

This means capital gains will become even more complicated and basically guarantees the Government will be 30% tax on the profit of your investment gain.

There is a lot more to this, and once it is legislated, we will no doubt be having some conversations with you on this one.

Negative Gearing Changes

From 1 July 2027, losses on established residential properties purchased after 7:30pm on Budget Night (12th May 2026) will only be deductible against future property income or capital gains. No-one really cares, because if you are making a loss on your residential rental property in this environment, we probably need to chat about other things.

Discretionary Trusts Targeted

The Government has also announced a proposed minimum 30% tax on discretionary trust income from 1 July 2028.

This massively impacts many family groups and small business structures that have operated legitimately for decades.

There is proposed rollover relief available for businesses wanting to restructure out of trusts, which is Government language for: “We changed the rules, so now you have to waste time and money restructuring to adapt.” This one is huge and will impact most of our business clients. Once this becomes law and we get the nitty gritty, there will be restructuring, re-education on running your business and a lot of wine & tears.

The Extra Shit Bits

Tax Cuts Still Coming. The already legislated tax cuts are still scheduled:
16% tax bracket reducing to 15% from 1 July 2026
Then reducing again to 14% from 1 July 2027
Employee Tax Changes
Can claim $1,000 in work-related expenses without receipts.
A new annual $250 tax offset from 2028… Please spend your extra $4.80 per week responsibly.
Business Measures
$20,000 Instant Asset Write-Off Made Permanent. At least one thing survived Budget Night.
Loss Carry-Back Rules for Companies.
Companies under $1 billion turnover can roll back losses in prior years to gain some tax advantage. This is not bad but will probably means a limited life expectancy.
ATO Audits Getting More Funding
The ATO has received additional funding for compliance, fraud monitoring and data matching activities. So, expect more reviews, expect more letters, expect more “please explain” correspondence and expect the ATO to know about things before you remember doing them. If you have outstanding lodgements, missing records or “creative” bookkeeping, now would be an excellent time to tidy things up.
Electric Vehicle FBT Changes
The current EV FBT concessions will gradually reduce from 2029 onwards, although transitional rules will apply to existing arrangements. As always with EV incentives, the rules remain wonderfully simple and easy to understand for absolutely nobody.

We’ll continue monitoring developments as legislation is released and the inevitable amendments, backflips and “clarifications” begin.

< Older Post

ASIC Annual Company Requirements

By Daniel Foelz • March 4, 2025

Every company registered in Australia must meet annual compliance obligations set by the Australian Securities and Investments Commission (ASIC). One of the key requirements is the annual statement, which ASIC issues to companies shortly after their annual review date - typically the anniversary of their registration. What is an ASIC Annual Statement? Shortly after a company’s annual review date, ASIC sends out an annual statement. This document includes: • Company’s Current Details: A summary of the company’s information as recorded by ASIC. • Annual Review Fee Invoice : An invoice detailing the fee required to maintain the company’s registration. • Corporate Key: A unique identifier that allows secure access to ASIC’s online services for updating company information. Companies must carefully review this document to ensure their information is correct and take action to maintain their registration. Annual Obligations for Companies To remain compliant and avoid penalties, companies must complete the following steps each year: 1. Pay the Annual Review Fee ASIC requires companies to pay a yearly fee to maintain their registration. The amount varies depending on the type of company (e.g. Private Company or SMSF Trustee Company). Payments must be made by the due date to avoid late fees and possible deregistration. These fees are included within our invoice issued to you. 2. Verify and Update Company Details Companies should check their annual statement to confirm that all details - such as registered office address, directors, and shareholders are accurate. If any changes are needed, they must be updated with ASIC by contacting our office. 3. Pass a Solvency Resolution Within two months of the annual review date, company directors are required to pass a solvency resolution. This resolution confirms that the directors have reasonable grounds to believe the company can pay its debts as they become due. While the resolution doesn’t need to be lodged with ASIC, it must be documented and kept with the company’s records. Consequences of Non-Compliance Failing to meet ASIC’s annual requirements can result in penalties, late fees, and even company deregistration. It is crucial for companies to adhere to these obligations to maintain their good standing and ensure uninterrupted operation. What Happens If You Don’t Receive Your Annual Statement? If the annual statement isn’t received within a week of the review date, companies should contact ASIC to avoid compliance issues and potential penalties. Deregistration Considerations If a company is no longer operating, it may apply for voluntary deregistration to avoid ongoing fees and obligations. Contact our office to discuss. Stay Compliant to Avoid Penalties By staying on top of annual reviews and ensuring all obligations are met on time, companies can remain in good standing and avoid unnecessary complications. For comprehensive information on annual statements and company obligations, refer to ASIC official website or contact our office.